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  1. REVIEW OF ETO OF NEPAL Bhim Dhoj Shrestha Ex-General Secretary Computer Association of Nepal July 14, 2006, Kathmandu

  2. Electronic Transactions Ordinance, 2004 (2061 B.S.) came into force on 15 September, 2004

  3. The Ordinance emphasizes to make legal provisions for authentication and regulating for the recognition, trueness, integrity and reliability of creation, production, processing, storage, communication and dissemination system of electronic records.

  4. The Ordinance have provision of making reliable and secured transactions carried out by means of electronic data interchange and other means of electronic communications

  5. The ordinance is expedient to make provisions for controlling of unauthorized use or illegally change in any electronic records.

  6. The Ordinance is based on the Model Law on Electronic Commerce adopted by the United Nations Commission on International Trade Law of a resolution dated the 30th January, 1997 of United Nations General Assembly.

  7. The ordinance aims to provide the legal infrastructure for e-transactions in Nepal.

  8. The Ordinance has 12 Chapters and 79 sections.Chapter 1 includes Preliminaries which contains Short Title "Electronic Transactions Ordinance" 2061.This Chapter defines 31 terms related to the subject, especially for the purpose of legality.

  9. The Chapter 2 stipulates that any subscriber may authenticate an electronic record by using his/her digital signature. Any person can verify an electronic record by use of a public key of the subscriber. Legal recognition of electronic records

  10. Chapter 3 deals about provisions relating to attribution, acknowledgement and dispatch of electronic records.

  11. Chapter 4 gives a scheme for Regulation of Certifying Authorities including, Controller of Certifying Authorities

  12. Chapter 5, 6 and 7 deals about Digital Signature and Certificates. The retention and deposits of private key, functions, duties and rights of subscribers, electronic record and government use of digital signature, e.g., governemnt executive orders, notifications, gazettes, notices, tenders, etc.

  13. Chapter 8 deals Network Service Provider, which says, will not be responsible for the reason of information or data of any third party, but not illegal.

  14. Chapter 10 talks of the provisions relating to Cyber Tribunal and Chapter 11 deals with the provisions relating to Cyber Regulations Appellate Tribunal.

  15. Chapter 9 offence relating to computer • Tampering with Computer source document • Unauthorized Access in Computer Materials • Damaging of any Computer or Information Systempunishable with imprisonment up to three years, or with fine which may extend up to two lakh rupees, or with both.

  16. Chapter 9 offence relating to computer • Publication of illegal materials in electronic form • Privacy Leak • Abetment to Commit the Offence Relating to Computer • Punishment to Accomplice • Punishment in an offence committed living outside the kingdom of Nepal • Seizure of system and electronic devices • Offences Committed by Organized Institutions

  17. Chapter 9 Certification Authority • Dissemination of False Information • Submissions or Display of False Licence or Certificates • Non-submission of Prescribed Statements or Documents to the controller or Certifying Authority • Publishing with a Purpose of Forgery • Seizure of system and electronic devices • Offences Committed by Organized Institutions • Other Punishment

  18. The Ordinance is not Applicable to • Negotiable Instruments • Transfer of ownership, mortgage • ownership to any immovable property • Power of Attorney • proceedings of any Arbitration • Could be changed by the notification

  19. Advantages of Cyber Laws • provides ways to deal with cyber crimes • can perform purchase transactions over the Net through credit cards without fear of misuse • provides legal framework so that information is not denied legally • created favorable environment for the Companies, who want to transact in e-formats • Digital signatures have been given legal validity and sanction in the Ordinance. • allows Government to issue notification on the web thus heralding e-governance

  20. Advantages of Cyber Laws • provides statutory remedy in case of anyone breaks into their computer systems or network and causes damages or copies data • successful implementation of E-governance is possible • can transform ‘general society’ to ‘cyber society’, citizens to netizens • decrease the chances of corruption

  21. Advantages of Cyber Laws • provided provision for e-procurement. • help to decrease gap of ‘digital divide’. • the environment ensures development of strong democracy in the country

  22. Implementations • created environment for e-transactions • almost all Government Ministries, Departments’ web site have been made • Most of the forms can be downloaded from the website to be filled up by the people

  23. Problems • the Office of the Controller of Certifying Authority do not have Controller • Cyber Tribunal and Appellate Tribunal have not been established • The function of these two tribunals are not described. • The rules and regulations based on ETO, 2004 have not yet been endorsed, hence not implemented.

  24. Problems • Another important and serious problem is revocation and passing it from parliament, which means converting ordinance into act • All facets of the government, not only the line ministry, should take ICT as a engine for the development of the country

  25. THANK YOU.