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Chapter – 1

Chapter – 1 Preliminary
1. Short Title, Extension and Commencement :

1) This Act may be  called “The Electronic Transactions act,2063 (2008)”.
(2) This Act shall be deemed to have been commenced from 24 Bhadra 2063 ( sep.2, 2006).
(3) This Act shall extend throughout Nepal and shall also apply to any person residing anywhere by committing an offence in contravention to
this Act.
2. Definitions : Unless the subject or context otherwise requires, in this Act,-
(a) “Asymmetric Crypto System” means a system that creates a secured  key-pair consisting of a private key creating a digital signature and a
public key to verify the digital signature.
(b) “License” means a license obtained pursuant to Sub-section (3) of  Section 18.
(c) “Originator” means a person who generates, stores or transmits electronic records, and this term also includes a person who causes any
other person to carry out such functions: Provided that it shall not include an intermediary.
(d) “Computer” means an electro-magnetic, optical or other high-speed data processing device or system, which performs logical, arithmetic and
memory functions by manipulating electro-magnetic or optical impulses, and also includes all acts of input, output, processing, storage and
computer software or communication facilities which are connected or related to the computer in any computer system or computer network.
(e) “Computer Database” means an information, knowledge and concept or presentation of instructions, which are being prepared or have already
been prepared in word, image, voice or audio visual form in a formalized manner or which have been produced by a computer,
computer system or computer network, with a view to use in a computer, computer system or computer network.
(f) “Computer Network” means an interrelationship between two or more than two computers having interconnection with each other or in contact
of communication.
(g) “Computer System” means a device or a group of devices, containing all  computer programmes including input and output support devices,
electronic instructions, input and output data that performs logical, arithmetic, data storage and retrieval, communication including controlling functions.

(h) “Computer Resource” means a computer, computer system, computer network, data, computer database or software.
(i) “Subscriber” means a person who has obtained a certificate under Sub- section (3) of Section 31.
(j) “Key Pair” means a private key in an asymmetric crypto system and of pair of public key, interconnected in a mathematics form with the
private key which has a code to verify digital signature by the public key to be created from the private key.
(k) “Data” means the presentation of information, knowledge, fact and concept or instructions in any form, which are kept in a formalized
manner in a computer system or computer network and is intended for processing the same, or processed or stored in a computer memory.
(l) “Tribunal” means the Information Technology Tribunal formed pursuant to section 60.
(m) “Private Key” means a key of any key pair used to create a digital signature.
(n) “Controller” means the Controller appointed or designated pursuant to section 13.
(o) “Digital Signature” means a signature made in any electronic form to be included in the transformation of electronic record by a person having a
non- transformed initial electronic record and the public key of signatory by using a type of asymmetric crypto system that may clearly ascertain
the following matters:
(1) Whether or not transformation of electronic record was created by using a type of private key keeping a logical consistency with
the public key of signatory; and
(2) Whether or not the initial electronic record has been changed after the transformation of electronic record.
(p) “Access” means an opportunity of gaining entry into, logical, arithmetical or resources of memory function of any computer,
computer system or computer network, giving instructions to such resources or making communication contact with such resources.
(q) “Appellate Tribunal” means the Information Technology Appellate Tribunal formed pursuant to section 66.
(r) “Certificate” means a Digital Signature Certificate issued by the Certifying Authority under Section 30.
(s) “Certification Practice Statement” means any statement issued by a Certifying Authority to specify the practices to be applied by the
Certifying Authority while issuing a Digital Signature Certificate.
(t) “Certifying Authority” means a certifying authority which has obtained a license to issue a Digital Signature Certificate under Sub-section (3) of
Section 18.
(u) “Addressee” means a person receiving the processed electronic record as intended by the originator.
Provided that it shall not include an intermediary.
(v) “Electronic Record” means the data, record, image or sound transmitted, received or stored in an electronic form by generating the same through
any means.
(w) “Electronic Form” means a form of information transmitted, received or stored by generating the same through the means of magnetic, optical,
computer memory or similar other devices.
(x) “Public Key” means a key of any key pair used to verify digital signature.
(y) “Information” means the data details of the scripted texts, images, sounds, codes, computer programmes, software and computer databases.
(z) “Information system” means a system to generate, produce, transmit, receive, store and display information or to process the same by other
(aa) Software” means any specific part of computer system such as system  software and application software having the capacity for operating
computer hardware.
(ab) “Computer Accessory” means a technology such as computer resource, the information used by any institution in its business, a software-like
item produced or purchased by such an institution, hardware and computer network.
(ac) “Government Authority” means a Ministry, Secretariat, Department of Government of Nepal or the Offices thereunder, Constitutional Body or
the Offices thereunder, Court or Tribunal or Office of the Nepal Army and it shall also includes other Offices of the similar nature.
(ad) “Public Institution” means the following institutions:-
(1) A company, bank or board whether fully or partially owned or controlled by Government of Nepal , or a Commission agency, authority, corporation, enterprise board, centre, council and other corporate body of the similar nature established by Government of Nepal pursuant to the laws prevailing.
(2) A university, school, research centre, and other similar academic or educational institutions operated by Government of Nepal or which have been receiving a full or partial grant from  Government of Nepal,
(3) The Local Bodies formed under the Local Self-Governance Act, 1998 (2055 B.S);
(4) The Institutions run on the loan, grant or guarantee of Government of Nepal;
(5) The Institution which is fully or partially owned or controlled by the institution referred to in sub-Clauses (1), (2), (3) or (4) or
which receiving grant from such institution;
(6) Any other Institutions prescribed by Government of Nepal as a public institution by a notification published in the Nepal Gazette.
(ae) “Prescribed” or “As prescribed” means prescribed or as prescribed in Rules framed under this Act.


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