KATHMANDU, June 12: The government has registered a bill in the House of Representatives that grants legal recognition to electronic records and to control theft occurring through electronic means.
The bill, registered on Tuesday, mentions that it aims to maintain the authenticity and reliability of electronic records and digital signatures, as well as protecting and properly using information, data, or details present in cyberspace.
The government says this bill will play an important role in the development, promotion, and regulation of information technology. The bill also makes it mandatory for government bodies or public institutions to keep information they create, collect, or receive in electronic form.
According to the provisions of the bill, government bodies and public institutions will be able to use digital signatures as per this Act when performing their duties or delivering services.
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The law states that any information, written document, data, or record that is required to be in written, printed, or any other form can also be kept in electronic form, and such electronic records will be granted legal recognition.
However, it is not mandatory to keep certain documents—such as power of attorney, promissory notes, resignation letters, mortgages, wills, FIRs (First Information Reports), reply letters, or documents used in court proceedings—in electronic form.
Strict penalties have also been provided to control cybercrimes. This law will apply throughout Nepal and will also be enforceable against individuals residing outside Nepal who commit offenses against Nepal or Nepalese citizens.
Additionally, it has been stated that there will be a National Cyber Security Centre (NCSC) for monitoring and responding to cybersecurity challenges. The NCSC will be located in the Kathmandu Valley.
Provision has been made for the ministry to designate a Joint Secretary-level employee to act as the head of the NCSC. If anyone uses electronic means to gain unauthorized access to someone’s user account or computer system, or enters such a system and alters or deletes data in a way that compromises its integrity, they may face up to two years in prison or a fine of Rs 200,000.
If anyone obstructs an electronic system, they will face up to three years in prison or a fine of Rs 300,000. Publishing information knowing that a certificate has been suspended or canceled will result in a penalty of two years imprisonment and a fine of Rs 200,000.
Anyone involved in producing, distributing, publishing, broadcasting, or buying and selling obscene content will face up to two years in prison or a fine of Rs 200,000. Similarly, stealing confidential codes will also be punishable by up to two years imprisonment or a fine of Rs 200,000. Theft of data from a computer will carry the same penalty of two years imprisonment or a fine of Rs 200,000.
If a crime is committed using artificial intelligence (AI), the person who commits the offense will be punished as if they personally committed the crime. If a firm, company, or organized institution commits an offense under this act, the related owner or stakeholder will be held criminally liable.
In cases related to offenses under this Act, the Government of Nepal will be the plaintiff. After this Act comes into effect, the Electronic Transactions Act 2063 will be repealed.
A nine-member Information Technology and Cyber Security Director Committee, chaired by the Minister of Communications, will provide policy guidance in the field of cyber security.
Any institution wishing to operate a data center, cloud service, or both within Nepal must obtain a license. The bill also states that if anyone needs to collect personal information, they must explain the purpose for which the information is required and obtain permission from the concerned individual.