Implementation of National ID delayed after writ petition in court

Kathmandu, Dec. 12: The government's decision to enforce the use of the National Identity Card (NID) from July 16 in a phase-wise manner remains unimplemented, leading to uncertainties about its future. 

The Cabinet decision held on June 6, 2024 was followed by an official announcement in the Nepal Gazette on June 24, stating that all services would be integrated with the NID system within a year.

As per the notice published in the Nepal Gazette, mandatory implementation was planned accordingly to carry out in three phases based on geographical regions to include social security, health insurance, and pensions. 

In the first phase, it was implemented in 29 districts with urban areas; in the second phase, in an additional 38 districts in the Tarai and Mountain regions; and in the third phase, the remaining 11 districts in the Himalayan region (Solukhumbu, Raswua, Manang, Mustang, Mugu, Humla, and others) were included.

Similarly, for other services too the national ID card was about to be implemented simultaneously across the country. Accordingly, from July 16, it became mandatory for revenue collection, driving licenses, company registration, and renewal. Additionally, from January 14, 2025, it was mandated nationwide for banking and financial institutions, telecommunication services, social security fund services, and real estate transactions.

However, the implementation of the NID was halted after the Supreme Court issued an interim order on August 23, instructing the government to suspend its decision. The court order followed a petition filed by advocate Ram Bahadur Rawal and others, who challenged the mandatory use of the NID for services traditionally based on citizenship certificates. The stay order has indefinitely delayed the much-anticipated project.

The order of the SC states that no service provided on the basis of citizenship should be made compulsory for the use of a national identity card. However, the requirement to make the national identity card mandatory for obtaining a passport remains in effect.

The court argued that the government's decision undermines the constitutional status of citizenship, which remains the primary legal document for any other identity cards. The government's gazette notification presented the NID as an alternative to the citizenship certificate, raising legal concerns.

Moreover, existing laws and regulations for services such as passports, social security, and health insurance either lack provisions mandating the NID or treat it as optional. For instance, the passport regulations recognise either the citizenship certificate or the NID as valid identification for application purposes.

The NID has been envisioned as a cornerstone of Nepal's digital transformation. Its integration with various public services is expected to reduce redundancy, curb identity fraud, and aid in combating issues like money laundering and terrorism financing. The system could also streamline the distribution of social security benefits and eliminate problems related to fake educational certificates and dual citizenship.

However, legal experts point out significant flaws in the regulatory framework, highlighting the need for constitutional amendments to elevate the status of the NID.

Despite delays, the Department of National ID and Civil Registration has made significant progress. As of mid-October, data for 16.09 million individuals have been collected, representing a majority of eligible citizens, given Nepal's population of 29.2 million, including around 9.5 million minors under 16 years of age.

Director Narayan Dahal for the Department of National ID and Civil Registration asserted there are no practical barriers to implementation of the National ID and emphasised the readiness of systems to integrate services with the NID. The government has also filed a review petition against the Supreme Court's stay order. "We are waiting for fresh order from the SC and will move ahead accordingly but for now, the process of its implementation has been stalled," said Dahal.

Dahal further said that to strengthen financial transparency, the NID is being linked with Know Your Customer (KYC) processes in banks and financial institutions. 

The revised anti-money laundering regulations will enable institutions to access NID-linked data for customer verification and other services.

The department is developing systems to ensure that updates in personal records—such as birth registration—are automatically reflected in the NID database, enhancing its utility and accuracy.