Banks Notes

Electronic Transaction Act 2063 Highlights – Bank Preparation Notes

— April 16, 2022 add comment
electronic transaction act

What is an Electronic Transaction ?

In simple term, as Electronic transaction is the transaction of electronic records, data  by using any kinds of electronic mediums. The transaction contains electronic records and valid digital medium. In short, electronic transaction is exchange of all types of electronic records through internet.

Objectives of Electronic Transaction Act 2063

Following are the major objectives of ETA 2063.

  1. To frame legal provision for authentication and regulation of electronic data.
  2. To make a reliable date generation, communication, and transmission.
  3.  To regulate electronic transactions activities.
  4. To create a secured and authentic means of electronic communication.

Scopes of the Electronic Transaction Act 2063

  1. Creation and use of digital signature
  2. Control cyber and computer-related crimes
  3. Protection of intellectual property (IP)
  4. Protection of confidentiality
  5. Regulations of an electronic transaction by establishing regulating bodies  – such as
    1. Office of Certificate Control (OCC)
    2. Certificate Agencies (CA)
    3. Subscribers

What are the Major provisions of the Electronic Transaction Act 2063

1. It has the provision relating to electronic records and digital signature.
2. It has the provision relating to dispatch, receive an acknowledgment of electronic records.
3. It has the provision of few regulating bodies and their functions, rights, and duties such as –

  • Office of Certificate Control (OCC)
  • Certification Agencies (CA)
  • Subscriber 

4. It has the provision relating the use of digital signature and certificate.
5. It has the provision relating to government use of the digital signature.
6. It has a provision relating to the computer network and network services providers.
7. It has the provision relating to computer-related crimes and punishments.
8. Provision of IT tribunal is defined as the first jurisdictional and appellate jurisdiction.

  • First Jurisdictional
  • Appellate Jurisdictional

9. It defines a few documents which this act is not applicable for

  • All the negotiable instrument related documents defined by the “Negotiable Instrument Act 2034”.
  • All the documents related to the ownership of properties (धनीपुर्जा, लालपुर्जा आदि ).
  • Any documents used as a primary document in the court process.

Q. Define is a cyber crime? Outline the major computer-related crime defined by Electronic Transaction Act and also mention the provision of punishment.

– Cyber crime is a crime committed by using cyber means or computer technology. Cyber crime is also known as computer-related crime. All the illegal activities committed by using or with the application as computer technology such as –

  • Damage to computer and computer system.
  • Acts to gain illegal access into the system.
  • Use as weapons to commit other crimes.
  • Acts against the provision of cyberlaw.

Some examples of cyber/computer crimes are

  • Creating fake documents
  • Blackmailing or social media abuse
  • Distribution of pornography and other prohibited materials
  • Misuse of electronic cards, materials
  • Misuse and piracy of intellectual properties
  • Spreading computer viruses/malware/

Major computer-related crimes and punishments 

Pirate/ Destroy/Alter computer source code

Unauthorized access in the computer system 

Damage to computer and computer system

  • Up to 3 years of imprisonment, or up to 2 lakh fine or both

Distribution of electronic materials in electronic form – Not to publish the prohibited materials which are prohibited by prevailing laws, the materials which may create jeopardy in social harmony, spread hate and jealousy, materials which may create harassment to women trafficking, pornography materials

  • Up to 5 years imprisonment or up to 1 lakh or both

Disclose of Confidentiality 

Deform false statement by parties at the time of the electronic transaction

  • Up to 2 years imprisonment or 1 lakh fine of both

Display and submit false license for electronic means

  • Only display 1 lakh fine
  • Display+submit and perform = 2 years imprisonment or 1 lakh fine or both

Non-submission of prescribed statements

  • Up to 50,000 fine

Computer fraud

  • Compensate claim amount
  • Fine up to 1 lakh and 2 years of imprisonment or both

Computer fraud

  • For abetment fine up to 50,000 and up to 6 months imprisonment

For accomplice 

  • Half of the main convicted

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