As remote commerce and e-governance expand in Nepal, signing contracts, invoices, tender bids, and employment letters electronically has become standard practice. However, confusion persists regarding the legal validity of scanned signature overlays versus cryptographic digital signatures.
1. The Legal Framework: Electronic Transactions Act 2063 (ETA 2063)
Nepal's Electronic Transactions Act 2063 (2006) provides the legal foundation for digital records and signatures:
- Section 3 & 4 (Legal Recognition): Any information or contract shall not be denied legal validity, admissibility, or enforceability solely on the grounds that it is in the form of an electronic record.
- Section 7 (Digital Signature Authentication): A document authenticated with a digital signature issued by a licensed Certifying Authority (CA) carries the same legal weight as a physical ink signature under Nepali evidence law.
2. Scanned Facsimile Signatures vs. Cryptographic Signatures
| Feature | Electronic / Scanned Signature | Cryptographic Digital Signature |
|---|---|---|
| Format | Image overlay of drawn or handwritten signature | Public-key cryptographic hash bound to signer identity |
| Tamper Evidence | Does not show if text was altered after signing | Invalidates immediately if even one character changes |
| Best Used For | Routine business agreements, NDAs, internal memos | High-value procurement tenders, banking, land registries |
Frequently Asked Questions
Written by Pooja Shrestha
HR Consultant & Career CoachTechnical writer and researcher at PDFNepal, focusing on digital document standards, sovereign encryption, localized government workflows, and high-performance web tooling in Nepal.