Academia International College

Affiliated to Tribhuvan University

Institute Of Science and Technology

Gwarko, Ring Road, Lalitpur -7, Nepal

Case Study On
“Cyber Laws in Nepal”
Submitted To:
Department Of Computer Science and Information Technology
Academia International College

Submitted By: Submitted on:

Kabita Maharjan

6th semester Signature:

24007
 Acknowledgement
I am profoundly grateful to all those who have contributed to the successful completion of case
study on cyber laws in Nepal. I am also deeply grateful for the support and assistance I have
received throughout the duration of this case study.

Foremost, I would like to thank our teacher Mr. Madan Raj Upreti sir for his support and guidance
in completing this case study.

To conclude, I am very thankful to collaborative effort of each and every individual and
organization for the successful completion of this case study.

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 Abstract
Cyber laws is a field of law which deals with the legal issues that arises from using technology.
Cyber laws are the set of rules that have been introduced to regulate online activities and prevent
any kinds of cyber crime. Cyber law provide provision of mentioning punishments any kinds of
cyber crime. Rapid increase of internet user across Nepal has lead to enactment of cyber laws to
protect public against cyber threats and provide cyber security

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III
 Contents
Acknowledgment ............................................................................................................................. I

Abstract ........................................................................................................................................... II

Introduction ..................................................................................................................................... 1

Cyber Crime ................................................................................................................................ 1

Cyber Law ................................................................................................................................... 1

Important Statistics...................................................................................................................... 2

Different Cyber Laws in Nepal ................................................................................................... 3

1. The Electronic Transactions Act, 2063 ............................................................................ 3

2. The Children’s Act 1992 .................................................................................................. 4

3. The copyright Act, 2022................................................................................................... 4

4. The Individual Privacy Act, 2018 .................................................................................... 4

Need for Cyber Law........................................................................................................................ 5

Objective ......................................................................................................................................... 5

Literature Review............................................................................................................................ 6

Findings........................................................................................................................................... 6

Present Context of Cyber Law in Nepal ......................................................................................... 6

Problem with cyber law in Nepal.................................................................................................... 7

Fundamentals Aspects of Cyber Law ............................................................................................. 8

Challenges in implementing cyber law in Nepal ............................................................................ 9

Solution for the present problem................................................................................................... 10

Recommendation for future cyber law development in Nepal ..................................................... 10

Conclusion .................................................................................................................................... 11

References ..................................................................................................................................... 12
List of figures
Figure 1: Core aspects of cyber law ................................................................................................ 9
 Introduction
In the modern world of computer and internet, we heavily depend upon this two technology. The
speed and dependability of computers have made our day to day life easier as the internet have
connected us around the globe with its vast and endless knowledge. The entry of digital technology
has added another important aspect into our live. With the entry of easiness in our life , there comes
our another obstacle. With the advent of the information sharing world, we have difficulties such
as hacking, intellectual property theft, credit card cloning, phishing, cyberbullying, privacy issues,
and the list goes on. Governments establish "Cyber Law" to regulate criminality in this dimension
of our lives.

Cyber law encompasses a wide range of concerns concerning the internet and other forms of
communication technology, including as intellectual property, privacy, freedom of expression, and
jurisdiction. Cyber law handles the legal concerns that arise in cyberspace.

Nepal's legal system is based on civil and common law, thus there is minimal precedence for
governing online. Despite tremendous expansion in technology and internet usage over the last
decade, progress in enacting comprehensive cyber legislation has been modest.

Cyber Crime
Cybercrime is a criminal activity done using computers and the Internet. This includes
downloading illegal music files, stealing millions of dollars from online bank accounts, and others.
Cybercrime also includes non-monetary offenses such as creating and distributing viruses on other
computers, posting confidential business information on the Internet, and so on [1].

Cyber Law
Cyber law refers to any law relating to protecting the Internet and other online communication
technologies. IT is developed in order to legalize the transactions which are done through
electronic means, control cybercrimes and punish cybercriminals. It includes a variety of legal
issues related to the use of computers and other communication media such as the Internet or any
other form of digital processing. Cyber law is defined as “The law which governs the legal issues
in cyberspace regarding the Internet or WWW (World Wide Web) for digital data processing and
transaction” [1].

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Nepal has been ranked 147th in the Human Development Index. Nepal has been ranked 147th in
the Human Development Index. The rate of crime in Nepal has been high, and cybercrime has
especially seen increased occurrence. During the ongoing pandemic, the number of cybercrime
cases in Nepal has increased, despite the fact that the disease has not affected the country much
[2].
Different countries have different cyber laws and cyber laws regulating bodies. In Nepal cyber law
is called as Electronic Transaction Act (ETA) 2063, which was passed in 2004. The bill deals with
issues related to digital signature, intellectual property, cybercrime, etc. The Act is dived into 12
sections and 80 clauses. This law keeps an eyeball on issues which are related to computer
networks and cybercrime. It brings cybercriminals under the justice of law and penalizes them just
like other crimes. As per the Act, if anyone is found violating cybercrime, he/she will be punished
for a minimum of 6 months to a maximum of 3 years in jail and has to pay a minimum of 50
thousand to a maximum of three lakhs as a penalty.

The Electronic Transaction Act, 2063 is Nepal’s first cyber law. It was created in response to the
growing usage of the internet in Nepal. It makes provision for the commercial use of computers
and networks; authorizes e-transactions and communication in public and private sectors;
criminalizes different computer-related unwanted activities:

“Whoever publishes or causes to publish, display any material in the electronic form including
computer, internet which are prohibited to publish or display by the law in force or which may be
contrary to the public morality or decent behavior or any types of materials which may spread hate
or jealousy against anyone or which may jeopardize the harmonious relations subsisting among
the peoples of various castes, tribes and communities shall be liable to be punished with a fine of
up to one hundred thousand rupees or with imprisonment of up to five years or both.” [2]

Important Statistics
There are a total of 10.21 million people in Nepal who used the internet in 2020. The number of
users increased by 315,000 between 2019 and 2020. Around 10 million people in Nepal use social
media. It appears that the country’s citizens have been reluctant to report cybercrime, with only 53
cases being registered in 2017. However, 2018 saw a sharp rise in the number of cases to 132. In

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2018 and 2019, a total of 180 cases were registered. Out of these 180, 125 cases were from the
capital city, Kathmandu, and the rest from others [2].

Over the past eight months, the bureau has registered a total of 4,937 cases, a number higher than
all cases registered in the whole of last fiscal year (4486 cases), according to Pashupati Kumar
Ray, the bureau’s spokesperson. The country faced its biggest cyberattack at the end of January
this year, which resulted in disruptions of hundreds of government websites across the country. It
even halted international travel due to the shutdown of the immigration server. At the time, around
1,500 government websites were shut down due to attacks on the central data bank at the
Government Integrated Data Centre, according to Ramesh Pokharel, assistant director at the
National Information Technology Centre under the Ministry of Communication and Information
Technology [3].

Different Cyber Laws in Nepal

1. The Electronic Transactions Act, 2063

Electronic Transactions Act, 2063 (2006) is Nepal's first cyber law. Prior to this law, cybercrime
was regulated by The National Criminal (Code) Act. This act legalized the communication and
transaction system of electronic records in Nepal. It includes the provision relating to electronic
records and digital signature, provision relating to the computer network and network services
providers, provision relating to dispatch, receipt and acknowledgement of electronic records,
provision relating to Controller and Certifying Authority, listed the offenses relating to computer
(cyber-crimes) and its punishments, and Provision of Information Technology Tribunal and
Information Technology Appellate Tribunal. Such Tribunals are meant to initiate the proceedings
and adjudicate the cyber-crimes. The provisions of the ETA (2006) matched with the UNCITRAL
Model Law Electronic Commerce (1996) (MLCE (1996)) [4].

Cybercrimes were dealt with under the Country’s criminal code before this law came into force.
Since the cases of cybercrime increased, it became necessary to enact a separate law. Chapter 9 of
the Act deals with offenses relating to computers, the main highlights of which are as follows:

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  Pirating or destroying any computer system intentionally without authority carries
imprisonment for three years, or a fine of two hundred thousand rupees, or both.
 Accessing any computer system without authority results in imprisonment for three years,
or a fine of two hundred thousand rupees, or both.
 Intentional damage to or deleting data from a computer system carries imprisonment for
three years, or a fine of two hundred thousand rupees, or both.
 Publication of illegal material in electronic form carries imprisonment for 5 years, or a fine
of one hundred thousand rupees, or both.
 Commission of a computer fraud carries imprisonment for two years, or a fine of one
hundred thousand rupees, or both [2].

2. The Children’s Act 1992

The aim of this Act is to protect and uphold the rights of children. It also prohibits child
pornography. Section 16(2) of the Act prohibits individuals from capturing any immoral picture
of a child. Section 16(3) of the Act prohibits the publication and distribution of any such
photographs of children [2].

3. The copyright Act, 2022

This act protects the copyright of ideas, including a computer program. It prohibits people from
copying and modifying the original work of others and using it for their own advantage or
economic benefits [2].

4. The Individual Privacy Act, 2018

This act is the first legislation in Nepal to protect the right to privacy of its people and define
personal information. It protects the privacy of the body, family life, residence, property, and
communication. It puts the responsibility on public entities to protect the personal data of
individuals. They cannot transfer such data to anyone without the consent of the owner. The Act
prescribes a general punishment for violation of privacy as three years of imprisonment, or a fine
of NPR 30,000, or both [2].

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 Need for Cyber Law
In today's technologically advanced society, the globe and its crimes are getting increasingly
digitally complex. The Internet was first designed as an uncontrolled research and information
exchange platform. It got increasingly transactional as time progressed, with e-business, e-
commerce, e-governance, and e-procurement, among other things. Cyber laws address all legal
concerns of internet crime. As the number of internet users grows, so does the demand for cyber
laws and their implementation.

In contrast to prior technologies, which had a trickledown impact, the cyber revolution promises
to reach the people swiftly. Such a promise and potential can be achieved only with an adequate
legal system based on a certain socioeconomic matrix. Cyber law affects practically everyone in
today's increasingly digitalized environment. As an example:

1. Almost all share transactions are in demat form. .

2. Government paperwork, such as income tax returns and corporate law forms, are now filled
out electronically.
3. The majority of individuals communicate by email, cell phones, and SMS messaging.
4. Important evidence is found in computers / mobile phones even in "non-cyber crime"
instances, such as divorce, murder, abduction, tax fraud, organized crime, terrorist
activities, counterfeit money, and so on.
5. All the businesses are extensively dependent upon computer networks and they keep their
important data in electronic form [5].
6. Digital signatures and contracts are replacing the traditional system of transacting business
[5].

Objective
 To explore different cyber laws in Nepal.
 To study different kinds of problems faced by cyber laws in Nepal
 To evaluate the present problem faced by cyber
 To provide recommendation regarding cyber laws and policy

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 Literature Review
Cyber law is a relatively young area of law that deals with legal concerns that arise from the use
of technology, specifically the internet. Cyber legislation in Nepal is still in its early stages. Cyber
law includes legal laws that govern electronic transactions, online activity, data security, and
cybercrime prevention. The Electronic Transactions Act (ETA) governs the legal foundation for
cyber law in Nepal.

In Nepal, the application of cyber legislation confronts major obstacles because of a lack of
knowledge, insufficient technological skill among law enforcement organizations, and low
resources for investigating cybercrime. It underlines the importance of capacity building and
specific training for law enforcement professionals in order to tackle cyber threats effectively.

Findings
Nepal's present cyber laws are out of date and fragmented, unable to handle modern technology
breakthroughs and future risks. There is a lack of cooperation among key parties in the
establishment and implementation of appropriate cyber regulations. Legal and law enforcement
officials have insufficient education and training in the complexities of cyber law and digital
security.

Present Context of Cyber Law in Nepal

The present scenario of cyber vision, cyber strategy and cyber law in Nepal is very poor. Some
of the popular cyber laws in Nepal are described below which faces serious issues and challenges
ahead in Nepalese cyber industry [6]:
1. Jashoosi Ain 2018 B.S. (Detective Act)
2. Patent, design ra trademark Ain 2022 B.S. (Patent, Design and Trademark Act)
3. Chalchitra Act 2026 B.S. (Film Act)
4. Likhathauko Gopayiyata Sambandhi Ain 2039 B.S. (Document Privacy Act)
5. Chaphakhanna tatha Prakashan Sambhandhi Ain 2048 B.S. (Press and Publication Act)
6. Nepal Press Council Ain 2048 B.S. (Nepal Press Council Act)
7. Rastriya Prasaran Ain 2049 B.S. (National Transmission Act)
8. Sharamjibhi Patrakar Ain 2051 B.S. (Journalists Act)
9. Pratilipi Aadhikar Ain 2059 B.S. (Copyright Act)

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After many years of effort and pressure from big neighbors the government had tabled the below
acts only in papers, which is coined to be the national cyber strategy of GoN. The ETDSA
(Electronic Transaction and Digital Signature Act) is popularly known as cyber law in Nepal with
zero level of implementation. The Act has covered many aspects of creation, production, storage
and transmission of electronic information regarding electronic fund transfers (EFTs). However,
the law has not included definition and provisions regarding the Intellectual Properties (IPs). Also
the law does not include the following copyright issues about the internet websites:

1. linking
2. framing
3. caching
4. mirror sites
5. third party liability

This ultimately leads to the amendments of previous laws and redefining the acts (as per need)
as pointed below in scenario of Nepal.

 Before 2004: Public Offense Act (cybercrimes were dealt with minimal success)
 2004: Electronic Transaction and Digital Signature Act-ETDSA (also known as Cyber Law)
 2006: Electronic Transaction Act (2063 BS)
 2008: Electronic Transaction Act (2065 BS with amendment)
 2010: IT Policy (tool for social and financial development)

Problem with cyber law in Nepal

1. Nepal‟s cyber world is ruled by Electronic Transaction Act (ETA) 2063 that protects users
online against cyber crimes. Though the cyber law is present but due to lack of proper
monitoring and updates it serves little use in protecting users online. The law has not been
adequately amended as a need of time.
2. Nepal faces a huge hindrance due to its limited policies and regulation.
3. Lack of investigation and cyber forensic has diminished the chance of catching the
criminals [7].
4. Trend of cybercrime has changed in Nepal in comparison to previous years. Before, it was
limited to data piracy, email blackmail, SMS blackmail, etc. whereas today it has reached

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 a wide variety such as phishing , unauthorized access, online fraud, online illegal activities,
etc. And there’s whole another level of social media related crime going on [7].

Fundamentals Aspects of Cyber Law

Electronic and digital signatures, cybercrime, intellectual property, data protection, and privacy
are all covered under cyber law. Defamation, fraud, copyright harassment or stalking, trade secrets,
freedom of speech, contracts, and employment law are all key topics of cyber law. Because it
covers practically all elements of transactions and activities involving the internet, World Wide
Web, and cyberspace, cyber law is crucial. In cyberspace, every action and reply has certain legal
and cyber legal implications [8].

1. Scam:

Cyber laws exist to protect people from online frauds and scams, these laws prevent any financial
crimes and identity theft that happen online.

2. Copyright Issues:

The Internet is the source of multiple types of content, but it is not right to copy the hard work of
any other person. There are strict policies in cyber laws against copyright that protects the creative
work of companies and individuals.

3. Online Harassment and Stalking:

Harassment is a violation of both civil and criminal laws. This crime is a major issue in cyberspace.
The legal system has some strict laws to prohibit these despicable crimes.

4. Data Protection

People using the internet risk their privacy while being online and often rely on cyber laws and
policies to protect their secrets. Also, companies should maintain the confidentiality of data of their
users [9].

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 Cyber
Cyber Security
Cyber
Freedom of
speech Privacy
Cyber
Law
Judirscation
Cyber
Cyber
Intellecutal
Business

Figure 1: Core aspects of cyber law

Challenges in implementing cyber law in Nepal

Shortage of skilled professionals

In nepal there are lack of qualified and experience cyber security professionals who can effectively
implement cyber law measures.

Even though the cyber bureau is full of complaints, it just has 84 personnel, and only 20 have the
knowhow to crack the cases. The rest of the staff are engaged in administrative work [3].

Lack of policy and regulatory frameworks

Nepal don’t have legal frameworks which covers all the areas of modern cybercrime. This makes
enforcing cyber law even more difficult task for Nepali law enforcement agencies.

Lack of awareness

The citizens of Nepal are not aware about cyber crimes and their impact. Victims are hesitant to
come forward in fear of being accused.

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 Solution for the present problem
Proper planning of policy

A proper governmental plan should be implemented in wide range. This will help the law enforcer
to execute those plans properly.

Public awareness

The general public must be made aware of the different cyber laws that are written in the law book.
Since those laws are made so that public can protect and be aware of their ethics.

More skilled human resources

Government should promote in producing more skilled human resources so that they can be
unavailable during unexpected situation as well.

Recommendation for future cyber law development in Nepal

Recommendation Description
Establishing cyber policy framework For the initial phase, Nepal should consider designing
existing cyber law into a broad policy
Invest in education and training To provide education and training program for the
programs experts about the recent technology, policy and laws.
Establishing a cyber security A combined task force would allow for a more broader
approach to security and engage in co-ordination with
the key parties.
Encourage active participation of Sharing of information and co-operation with the
private sector party private sector partner can help to maintain the security
of the digital world.

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 Conclusion
Despite the fact that ICT has tremendous potential for citizens, corporations, and governments,
there is a significant likelihood of security dangers in the cyber world. There exist laws in Nepal
that allow digital and cyber activities, however these laws and regulations are ineffective in dealing
with the increasing cyber threat environment due to the slow process of legislation making and
lawmakers' lack of understanding and competence. Nepal's cyber policies are more concerned with
boosting cyber utility than with cyber security. To keep up with the changing needs of the cyber
world, cyber legislation must be revised on a regular basis. More study is needed to determine the
most effective and acceptable methods of educating individuals on how to defend themselves from
cyber-attacks.

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 References

[1] G. Chhetri, "Cyber Law of Nepal and International Cyber Law," 2021.

[2] "Cyber Law in Nepal," 2021.

[3] A. Ojha, "Cybercrime," The Kathmandu Post, 2023.

[4] G. o. Nepal, "The Electronic Transaction Act, 2063," 2063.

[5] D. M. Chudasama, "A Comparative Study on Cyber crime, Cyber Security and Cyber Law,"
2023.

[6] N. Kshetri, "Cyber Strategy of Government of Nepal," p. 20, 2017.

[7] M. Aryal, "Cybercrime in Nepal - Cyber Law and its challenges," ICT frame magazine pvt
ltd, 2016.

[8] M. Elvis, "What are the fundamentals of cyber law?," 2022.

[9] A. S. Bose, "EDULAW," 09 01 2023. [Online]. Available:

https://portal.theedulaw.com/SingleArticle?title=fundamentals-and-areas-encompassing-
cyber-laws.

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