Discuss the functions, duties and powers of controller as per Electronic Transaction Act.

Under Nepal’s Electronic Transaction Act, 2063 (2008), the Government appoints a Controller (and Deputy/Assistant Controllers) under the Ministry to regulate digital signatures, certifying authorities and electronic transactions. The Office of the Controller of Certification (OCC) performs this role.

Functions, duties and powers:

1. License Certifying Authorities (CA): Grant, renew, suspend or cancel licenses to organizations that issue Digital Signature Certificates. No one can operate as CA without Controller’s license.

2. Supervise and monitor CAs: Inspect CA offices, check their security practices, key management and staff qualifications. Can order correction if standards are violated.

3. Set standards for Digital Signatures: Fix technical standards for asymmetric cryptography, hash function and secure devices to ensure signatures are authentic and legally valid under Section 10.

4. Maintain records and repository: Keep central records of all licensed CAs, issued certificates, suspended/revoked lists. Publishes trusted list so public can verify a signature.

5. Investigate and take action: Inquire into complaints of misuse, unauthorized access or breach. Can suspend license, impose fines, and recommend prosecution for cyber crime under Chapter 9 (hacking, fraud punishable with fine/imprisonment).

6. Policy advice and awareness: Advise Government on e-transaction policy, promote secure e-governance and e-commerce, and coordinate with Nepal Police and courts in digital evidence cases.

Exam line: Controller = regulator of digital trust — like NRB for banks, Controller for digital signatures.