Nepal’s Digital Identity System: Progress and Challenges

Nepal has been on a transformative journey since 2012 to develop a comprehensive digital identity system, aiming to overhaul governance, service provision, and economic development. This project seeks to replace traditional paper-based citizenship certificates with biometric smart national ID cards.

An important achievement of the project includes the recent implementation of unique ID numbers assigned at birth and the issuance of millions of digital ID cards, facilitated by the Strengthening Systems for Social Protection and Civil Registration Project in Nepal.

International collaboration, notably with IDEMIA, has been crucial in providing biometric technology and services for the efficient issuance of ID cards in Nepal.

The program has made significant progress recently, including assigning unique ID numbers at birth to streamline access to government documents and incorporating biometric data into various systems for improved efficiency.

Although the national ID card system has faced challenges in integration and functionality, efforts are ongoing to ensure legislative amendments and digital integration to enhance its usefulness and benefits.

A research study highlights the significance of digital banking access in Madhesh Province for financial inclusion, emphasizing the potential for transitioning to Quality Digital Access solutions.

Despite making strides, the digital identity project in Nepal faces challenges such as political instability, inadequate infrastructure, limited education, and resource capacities, hindering its successful implementation.

Collaboration between central and local governments is essential to enhance service delivery within Nepal’s federal framework, emphasizing the importance of effective government control and privacy safeguards.

The rapid digitalization of payment gateways in Nepal, with platforms like CellPay, eSewa, and others, is transforming financial transactions and making digital transactions more accessible and secure for the population.

Nepal’s progress towards a complete digital identity system, encompassing 14 million citizens with biometric data and collaborations with international technology providers, indicates commendable strides towards governance and service delivery improvements, albeit with privacy and legislative challenges to address.