Electronic Transaction Rules, 2008
The Electronic Transaction Rules were introduced one year after the ETA to provide procedural details and guidance for the effective implementation of the Act.
The Electronic Transaction Rules (ETR) of Nepal were formulated to support the Electronic Transaction Act (ETA), 2008 by providing detailed procedures and guidelines for its implementation. These rules primarily address operational, procedural, and regulatory aspects related to electronic transactions and cyber activities.
Purpose of the Rules:
- To define technical and administrative procedures for digital transactions.
- To explain how digital certificates and signatures are to be used and validated.
- To outline roles and responsibilities of regulatory bodies.
- To establish the office of Controller of Certifying Authority (CCA) for managing digital certificates.
Key Provisions of Electronic Transaction Rules
- Electronic Records
- Recognition of electronic records as legally valid, similar to paper documents.
- Procedures for storing, verifying, and accessing electronic records.
- Digital Signatures & Certificates
- Rules for issuing, verifying, and using digital signatures.
- Regulation of certifying authorities (CAs) who provide digital certificates.
- Ensures authenticity, integrity, and non-repudiation of electronic transactions.
- Certifying Authorities (CA) Licensing
- Defines the process for registration and licensing of certifying authorities.
- Sets conditions, fees, and compliance measures for CAs.
- Provides for suspension or cancellation of licenses in case of violations.
- Cybercrime Handling
- Details procedures for filing cybercrime complaints.
- Provides mechanisms for investigation and evidence collection.
- Supports enforcement of penalties as per the ETA.
- Security Measures
- Guidelines for encryption, access control, and secure storage of data.
- Encourages adoption of international standards in IT security.
- E-Governance and E-Commerce
- Promotes electronic filing, payments, and service delivery by government institutions.
- Provides legitimacy to e-commerce transactions such as online contracts and payments.
Key Provisions in the Rules:
| Area | Details |
|---|---|
| Digital Signature | Criteria for issuing, renewing, and revoking digital certificates. |
| Certifying Authorities | Rules for licensing, operation, and monitoring of certificate providers. |
| Security Measures | Requirements for protecting data integrity and user privacy in electronic communication. |
| Record Keeping | Organizations must maintain logs of electronic transactions. |
| Inspection and Audit | Regulatory bodies may inspect digital service providers to ensure compliance. |
Significance of ETA and Rules:
- Encourages digital transformation in both government and business sectors.
- Protects users from cyber threats by penalizing digital misconduct.
- Builds trust in online platforms, e-commerce, and digital payment systems.
- Supports legal proceedings by making digital evidence admissible in court.
Limitations and Challenges:
- Many parts of the law are outdated compared to current technologies (e.g., AI, blockchain).
- Weak enforcement mechanisms and lack of cybercrime training among law enforcement.
- Public lack of awareness about digital rights and reporting procedures.
- The law does not clearly cover emerging threats like cyberbullying, social media scams, etc.
