Era of electronic transaction begins

Cyber law comes into effect •Digital signature to be accepted

Kathmandu, December 31:

Nepal has moved a step further in the information and communication technology (ICT) as the government has promulgated Electronic Transaction Act-2063 and Regulations, legalising all electronic transactions and digital signatures.

The House of Representatives (HoR) approved the Electronic Transaction Act-2063 on December 4 and the Ministry of environment, science and technology (MoEST) formulated the Regulations. “The new legislation has not only legalised all forms of electronic transactions and digital signatures but has also clearly spelled out ways to regulate various computer-based activities and punish cyber crimes,” said Purushottam Ghimire, under secretary at the MoEST.

Making a presentation on Cyber Law at a programme organised here by Nepal Chamber of Commerce (NCC) and IT Professional Forum (ITPF) today, Ghimire stated that the new legislation has clearly set forth legal framework, administrative and application mechanism for electronic transaction and digital signature.

Besides legal validity of electronic records and digital signature, the new Act has made a provision of Regulator and certification authority. The Act is divided into 12 sections and 80 clauses with detailed information on role and rights of regulator, certification authority, customer, government and all the concerned stakeholders.

It has also envisaged a separate judicial body -IT Tribunal and Appellate Tribunal, to look into all cases related to computer and cyber crimes. The 3-member tribunal will be headed by the district court judge or legal officer of equivalent status. The tribunal will be responsible for preliminary cases, while the appellate tribunal will look into major cases.

The computer and cyber crimes such as hacking, piracy, copyright violation, fraudulent and all other deceitful activities have been clearly defined and punishments are set accordingly. The action against such crimes and punishment will be in the range of a minimum Rs 50,000 to a maximum Rs 3,00,000 in cash and six months to three years imprisonment.

The electronic transaction and digital signature is valid not only for the private sector but also for the government agencies. It allows the government offices to use electronic medium for tender notice, vacancy announcement and others. It also validates public procurement and acceptance of electronic applications.

Surendra Bir Malakar, president NCC said that this legislation would be beneficial to bus-iness community. He emphasised the need of better infrastructure like telephone, Internet connectivity, and electricity and so on for better yield from the application of ICT tools.

“The new law would facilitate business process and transactions would be made simpler, easier, swift and cost effective,” said Lochan Lal Amatya, president of ITPF. “The bottom line is the business facilitation,” he added.

Rajesh Shakya, member of ITPF and CEO Hitech Valley iNet Pvt Ltd, however, asked the concerned authority to bring into application of the provisions set by the legislation at the earliest possible in order to get benefit. “Sooner the implementation — with proper manpower — better the results will be,” he said.