Database

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NEPAL

N/A

Pillar Online sales and transactions  |  Indicator UNCITRAL Model Law on Electronic Signatures
Lack of adoption of UNCITRAL Model Law on Electronic Signatures
Nepal has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.
Coverage Horizontal

NEPAL

Since January 2023
Since July 2018

Pillar Online sales and transactions  |  Indicator Restrictions on online payments
Unified Directives Related to Payment Systems 2079 (भुक्तानी प्रणाली सम्बन्धी एकीकृत निर्देशन – २०७९)

Nepal Rastra Bank Directive of 2018
Under the Unified Directives Related to Payment Systems 2079, specific transaction limits are imposed on electronic transactions, encompassing those conducted via mobile banking, internet banking, and e-wallets. The daily transaction limit for mobile banking, including QR code payments, is set at NPR 300,000 (approx. USD 2,200), while internet banking transactions are capped at NPR 2 million (approx. USD 14,800) per day. Additionally, users can transfer up to NPR 200,000 (approx. USD 1,500) per day and NPR 1 million (approx. USD 7,400) per month from a bank account to an e-wallet. Similarly, transfers from e-wallets to bank accounts are restricted to NPR 200,000 (approx. USD 1,500) per day and NPR 1 million (approx. USD 7,400) per month. Transfers between e-wallets are limited to NPR 50,000 (approx. USD 370) per day and NPR 500,000 (approx. USD 3,700) per month.
The Nepal Rastra Bank, serving as Nepal's Central Bank, has established these ceilings on maximum daily and monthly electronic transaction amounts through various directives, starting with one issued in 2018.
Coverage Electronic transactions

NEPAL

Since August 2015, last amended in June 2020
Since June 2016

Pillar Online sales and transactions  |  Indicator Restrictions on online payments
Payment and Settlement By-Laws, 2015

Licensing Policy for Institution/Mechanism Operating Payment Related Activities, 2016
According to Chapter 3 of the Payment and Settlement By-Laws of 2015, payment-related service providers are required to register a company in Nepal. Furthermore, under the Licensing Policy for Institutions/Mechanisms Operating Payment-Related Activities, providers must obtain a license from Nepal Rastra Bank (NRB), the central bank of Nepal, to operate as either a Payment Service Provider (PSP) or a Payment System Operator (PSO). PSPs are institutions that offer payment services through electronic means, including domestic money transfer and bill payment services for goods and services. PSOs are institutions involved in the operation, control, and clearing of payment-related activities.
It is reported that the Payment and Settlement By-Law 2020, issued by NRB in June 2020, supersedes the previous regulation. However, it is reported that the requirement to obtain a license from Nepal's central bank to operate as either a PSP or PSO remains in effect. The legal text is not available online.
Coverage Online payment services

NEPAL

N/A

NEPAL

N/A

Pillar Online sales and transactions  |  Indicator Restrictions on domain names
Policy for Domain Name Registration Under NP CCTLD
According to the policy for domain name registration under NP CCTLD, only foreign companies that register in Nepal or register their trade name (trademark) with the government can register a '.np' domain.
Coverage Horizontal

NEPAL

Since November 2023

Pillar Online sales and transactions  |  Indicator Local presence requirements for digital services providers
Directives on the Operation of Social Networking, 2023 (सामाजिक सञ्जालको प्रयोगलाई व्यवस्थित गर्ने निर्देशिका, २०८०)
The Nepali government has mandated that social network platforms (SNPs) such as Facebook, TikTok, and YouTube must register and establish offices in Nepal. According to Art. 6 of the "Directives on the Operation of Social Networking 2023", SNP operators must arrange a point of contact within Nepal to address grievances related to the use of social networks. Additionally, any SNP that does not have an office in Nepal at the commencement of these Directives must establish an office or designate a contact person within three months. Pursuant to Art. 3.7, the Ministry of Communications and Information Technology may ban any SNP from operating in Nepal if it does not comply with these requirements.
Art. 2 of the Directive defines SNPs as Internet or information technology-based operating systems available to the public, such as Facebook, TikTok, Viber, Pinterest, WhatsApp, Messenger, Instagram, YouTube, LinkedIn, WeChat, and others, that allow individuals or organisations to exchange ideas or information with each other or to disseminate user-created content.
Coverage Social network platforms

NEPAL

Since September 2018
Since December 2006

Pillar Online sales and transactions  |  Indicator Framework for consumer protection applicable to online commerce
Consumer Protection Act, 2075 (2018) (उपभोक्ता संरक्षण ऐन, २०७५)

Electronic Transactions Act, 2063 (2008) (विद्युतीय (इलेक्ट्रोनिक) कारोबार ऐन, २०६३)
The Consumer Protection Act and the Electronic Transactions Act provide a comprehensive framework for consumer protection that also applies to online transactions. The Law on Electronic Transactions regulates electronic communications and records, and it establishes the legal provisions aimed at authenticating and regulating electronic data. It also creates a secure and authentic method of electronic communication while addressing the regulation of all issues related to electronic transactions.
Coverage Horizontal

NEPAL

Since December 2006

Pillar Intermediary liability  |  Indicator Safe harbour for intermediaries for copyright infringement
Electronic Transactions Act, 2063 (2008) (विद्युतीय (इलेक्ट्रोनिक) कारोबार ऐन, २०६३)
The Electronic Transactions Act establishes a safe harbour regime for intermediaries for copyright infringements. According to Art. 43, network service providers are not subject to criminal or civil liability arising from third-party content. The only exception is if the network service provider publishes the content fully aware that it contravenes the law.
Coverage Network service providers

NEPAL

Since December 2006

Pillar Intermediary liability  |  Indicator Safe harbour for intermediaries for any activity other than copyright infringement
Electronic Transactions Act, 2063 (2008) (विद्युतीय (इलेक्ट्रोनिक) कारोबार ऐन, २०६३)
The Electronic Transactions Act establishes a safe harbour regime beyond intermediaries for copyright infringements. According to Art. 43 of the Act, network service providers are not subject to criminal or civil liability arising from third-party content. The only exception is if the network service provider publishes the content fully aware that it contravenes the law.
Coverage Network service providers

NEPAL

Reported in 2021, last reported in 2023

Pillar Intermediary liability  |  Indicator User identity requirement
Mandatory SIM card registration
It is reported that Nepal imposes an identity requirement for SIM registration. Anyone wanting to purchase a SIM card has to provide their national ID card or a passport in case of foreigners to activate a new prepaid SIM card.
Coverage Telecommunications sector

NEPAL

Since November 2023

Pillar Intermediary liability  |  Indicator Monitoring requirement
Directives on the Operation of Social Networking, 2023 (सामाजिक सञ्जालको प्रयोगलाई व्यवस्थित गर्ने निर्देशिका, २०८०)
Pursuant to Arts. 6 and 7 of the "Directives on the Operation of Social Networking 2023", operators of social network platforms (SNPs) are required to establish a point of contact within Nepal to handle grievances related to platform usage. This designated contact must identify and address content disseminated on social networks that violate the law. Additionally, under Art. 8, SNPs must develop algorithms and implement measures to prevent the dissemination of information that contradicts prevailing laws. According to Art. 3.7, the Ministry of Communications and Information Technology may ban any SNP from operating in Nepal if it does not comply with these requirements.
Art. 2 of the Directive defines SNPs as Internet or information technology-based operating systems available to the public, such as Facebook, TikTok, Viber, Pinterest, WhatsApp, Messenger, Instagram, YouTube, LinkedIn, WeChat, and others, that allow individuals or organisations to exchange ideas or information with each other or to disseminate user-created content.
Coverage Social network platforms

NEPAL

Reported in 2023

Pillar Content access  |  Indicator Blocking or filtering of commercial web content
Ban on TikTok
It is reported that in November 2023, the Nepali government banned TikTok to protect “social harmony”, in response to public concerns that TikTok encourages hate speech. This decision followed the "Directives on the Operation of Social Networking 2023", issued days earlier, that tightened content regulation across all social media platforms.
Coverage Tiktok

NEPAL

Reported in 2024

Pillar Content access  |  Indicator Presence of Internet shutdowns
Presence of Internet shutdowns
The indicator "6.2.4 - Government Internet shut down in practice" of the V-Dem Dataset, which measures whether the government has the technical capacity to actively make internet service cease, thus interrupting domestic access to the internet or whether the government has decided to do so, has a score of 3 in Nepal for the year 2023. This corresponds to "Rarely but there have been a few occasions throughout the year when the government shut down domestic access to Internet."
Coverage Horizontal

NEPAL

Since March 2017

Pillar Content access  |  Indicator Licensing schemes for digital services and applications
Online Media Operation Directive, 2073 (अनलाइन सञ्चारमाध्यम सञ्चालन निर्देशिका, २०७३)
According to Section 3 of the Online Media Operation Directive, online news companies are required to be registered with the Department of Information and Broadcasting to operate.
Coverage Online news

NEPAL

Since June 1995, as amended in March 2022

Pillar Content access  |  Indicator Licensing schemes for digital services and applications
National Broadcasting Regulation, 2052 (राष्ट्रिय प्रसारण नियमावली, २०५२)
The National Broadcasting Regulation was amended in 2022 to incorporate over-the-top (OTT) services and internet television within the definition of "other means of communications." With this inclusion, the amended Regulation mandates that OTT and internet television providers obtain licences to operate their services in Nepal. The term "OTT" is defined as the broadcasting of content on demand via the internet, encompassing media streaming services delivered through various platforms utilising internet connectivity. In addition, "internet television" is defined as the routine transmission of self-produced audio-visual programmes through the internet.
Coverage Over-the-top and internet television providers

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