Building Digital Nepal: Opportunities Amid Governance Gaps
Nepal’s push toward large-scale digital transformation, backed by $90 million in concessional financing from the World Bank and the Asian Development Bank, raises critical governance and rights-based concerns that demand urgent attention.
While the “ Nepal Digital Transformation Project” promises integrated public services, improved efficiency, and enhanced transparency, it also exposes significant gaps in Nepal’s digital policy and legal framework. The planned rollout of centralized systems, such as an Integrated Citizen Service Portal, Digital Locker, and government-wide data exchange, will involve the collection, storage, and sharing of vast amounts of sensitive personal data. In the absence of a comprehensive data protection law and strong institutional safeguards, this creates risks related to privacy violations, data misuse, and potential surveillance.
Moreover, the ambition to interconnect government databases and digitize high-impact services like land administration raises concerns around data accuracy, accountability, and redress mechanisms. Without clear oversight structures and transparency in how these systems operate, citizens may face challenges in correcting errors or addressing grievances within increasingly automated systems.
Cybersecurity is another pressing issue. Although the project includes investments in cybersecurity and electronic signatures, Nepal’s current preparedness to handle large-scale cyber threats remains limited. A rapid expansion of digital infrastructure without parallel strengthening of security capacities could make critical systems vulnerable to breaches and attacks.
Additionally, the project’s focus on digital-first service delivery risks deepening existing inequalities if issues of digital access and literacy are not adequately addressed. Rural populations, marginalized communities, and those with limited digital skills may face barriers in accessing essential public services, undermining the principle of inclusive governance. Strengthening legal frameworks on data governance, ensuring independent oversight, and embedding accountability mechanisms will be essential to mitigate risks.
As Nepal advances its digital agenda, the challenge lies not only in building infrastructure but in ensuring that digital transformation is grounded in human rights, inclusivity, and public trust.
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NRB Tightens Cybersecurity and Digital Banking Rules
The Nepal Rastra Bank has revised its Integrated Directive 2082, introducing stricter standards on cybersecurity, digital banking, and customer data protection. Banks and financial institutions are now required to upgrade their technology systems, conduct regular security audits, especially for cross-border digital payments, and ensure strict confidentiality of customer data, with heavy fines for violations. The central bank is also implementing a Portfolio Analysis and Reporting System to enhance real-time monitoring, transparency, and detection of risky transactions.
20 Nepalis Rescued from Online Scam Centers in Cambodia
Twenty Nepali citizens have been rescued after being forced to work in illegal online scam centers in Cambodia, where they had traveled on visit visas with promises of high-paying jobs. Stranded after their visas expired, they were repatriated through the efforts of the Nepali Embassy in Bangkok, with support from the Cambodian government and the Non-Resident Nepali Association of Cambodia. The rescued individuals returned to Kathmandu on Thursday via Tribhuvan International Airport.
Social Media Misuse Fuels Child Rights Violations in Elections
A study by Children as Zone of Peace CZOP- National Campaign recorded 350 child rights violations during the HoR Election 2026, with major concerns around social media misuse. According to the report, children were widely used in online campaign content, including in propaganda videos and political messaging, exposing them to exploitation and digital risks. The report calls for stricter monitoring, clear guidelines, and stronger accountability to prevent the political use of children online.
NHRC Finds Excessive Force Used in Gen-Z Movement, Recommends Action
The National Human Rights Commission’s study committee has concluded that the government used unnecessary force during the Gen-Z Movement on September 8, leading to casualties and escalating violence the following day. The committee has recommended investigation and action against officials at all levels, including then Prime Minister KP Sharma Oli. Based on interviews, CCTV analysis, and forensic reports, the committee found that the use of force was unjustified and contributed to the unrest. It has also called for accountability for those involved in arson and vandalism on September 9. The report, submitted on March 20, expected to be made public following formal approval by the commission.
National ID to be Issued Without Separate Application
The government has removed the requirement for a separate pre-enrollment form to obtain a national identity card. Citizens can now apply for NID using their citizenship number directly at District Administration Offices. This change is made possible through the integration of the Central Citizenship Management Information System (CCMIS) and the National Identity Card Management Information System (NIDMIS) via API. On the same day of receiving citizenship, personal and biometric details can be recorded, enabling faster ID registration. The initiative is expected to reduce service time, minimize repeat visits, and strengthen digital governance and public service delivery across Nepal.
Attorney General Bhandari Decided Not to pursue the case against Worldlink
Attorney General Bhandari has decided not to pursue a case against Worldlink Communications Limited, clearing the company of allegations involving nearly NPR 300 crore in revenue leakage. Endorsing earlier findings by government attorneys in Lalitpur and Patan, the Attorney General’s Office concluded that Worldlink’s billing practices, particularly its division of internet service and maintenance fees, were in line with legal provisions, which allow up to 50% of service charges to be categorized as maintenance and exempt from Telecom Service Charges (TSC). While some income tax matters remain under routine audit, no immediate legal action will be taken against Worldlink following this decision.
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Mis/disinformation
Political Misinformation and Hate Speech Surge on Nepali Social Media
Consistent with trends observed in previous weeks, social media in Nepal continues to experience a rise in misinformation, disinformation, and hate speech in the post-election period, much of it politically motivated. Several misleading incidents have recently come to light.
A viral post falsely attributed a statement to UML lawmaker Padma Aryal, claiming she “knows how to put Rastriya Swatantra Party (RSP) MPs in their place in parliament.” Independent lawmaker Mahavir Pun responded to the post, but fact-checks confirmed the claim was misleading. Aryal did not make such a statement; she acknowledged RSP’s majority and highlighted their role as a strong opposition while cautioning the government against a wrong trajectory.
Another misleading claim circulated on Facebook (Kapuri Media, 19,000 followers), suggesting that Milan Limbu of RSP, second on the proportional list, did not become an MP and is a central member of RSP. Fact-checks clarified that Limbu had withdrawn his name prior to the election and is not a central member.
Additionally, a video on BN Nepali Khabar (188,000 followers) falsely claimed that the RSP-led government planned to ban 500 and 1000 rupee notes.
The ongoing circulation of such politically driven misinformation and hate speech poses serious risks to social cohesion, fuels polarization, undermines democratic norms, and erodes public trust in information. Nepal’s post-election period underscores the urgent need for enhanced digital literacy, responsible platform governance, and effective regulatory measures to protect the integrity of the information ecosystem.
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DRN Activities
DRN Concludes Roundtable on Use of Digital Space in 2026 Elections
On 22 March 2026, Digital Rights Nepal, with support of Digital Democracy Initiative, successfully concluded a roundtable discussion on the Use and Impact of Digital Space during the House of Representatives Elections held on 5 March 2026.
The discussion was initiated with the objective of understanding how digital spaces were utilized throughout the electoral period, including in shaping narratives, political advertising, fundraising, and broader online engagement. In this context, a diverse group of stakeholders, including civil society actors, experts, youth representatives, election observers, collectively reflected on these evolving dynamics.
The session enabled a comprehensive discussion on both the #opportunities for strengthening digital democracy, such as enhanced citizen engagement and access to information, and the emerging #challenges related to misinformation, #data-driven campaigning, AI-generated content, and gaps in platform governance.
Moving forward, DRN aims to document and further analyze these findings to contribute towards building more rights-based digital spaces during elections in future. |
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AI Summit Report Submitted to MoCIT
Digital Rights Nepal, along with Digital Media Foundation and Robotics Association of Nepal, visited the Ministry of Communication and Information Technology to submit the report of the 2nd National Summit on Artificial Intelligence. We had a productive discussion with the Secretary and Joint Secretary of the Ministry, sharing key insights and recommendations emerging from the summit.
The report builds on discussions hosted through the official portal: https://ai.dmf.org.np/
We look forward to engaging with the incoming cabinet and exploring meaningful avenues for collaboration to advance responsible and inclusive AI governance in Nepal. |
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Digital Rights Weekly is a week-based update on Digital Rights and ICT issues, that happened throughout the week, compiled and analyzed from the digital rights perspective by Digital Rights Nepal (DRN). DRN is a not-for-profit initiative dedicated to the protection and promotion of digital rights, including the right to online freedom of expression and association, online privacy, access to information, and related issues such as internet governance, cyber laws/policies, and cyber securities in Nepal.
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