MPs Discuss Amendment to Secure Transactions Bill

A meeting of the Finance Committee under the House of Representatives on Tuesday discussed the amendments proposed to the Secure Transactions (First Amendment) Bill, 2080. Six MPs proposed amendments to this bill, which was passed by the National Assembly.

The amendment proposals were submitted by MPs Ranendra Barali, Nisha Dangi, Damodar Poudel Bairagi, Madhav Sapkota, Sobita Gautam, and Prem Suwal. The meeting discussed the proposals registered by MPs Madhav Sapkota, Damodar Poudel Bairagi, and Sobita Gautam.

MP Madhav Sapkota emphasized that the bill should be amended to ensure that the term "secure" in the bill encompasses all types of transactions conducted by individuals and entities at both the national and international levels. He also suggested that the act should include provisions to recognize qualification certificates and skill certificates obtained from recognized educational institutions as valid collateral. 

MP Sobita Gautam proposed that the bill explicitly define collateral to include "movable, immovable, and intangible property." She underscored the need for a legal framework to allow intangible property to be accepted as collateral.

The Ministry of Finance initially registered this bill in the National Assembly on February 16, 2024, highlighting the necessity of updating the legal provisions related to secure transactions to make transactions conducted by individuals and entities at both the national and international levels safe and systematic.

Currently, the Secure Transactions Act, 2063 BS is being implemented to provide a unified legal framework for secure transactions and ensure compliance with obligations over movable and intangible assets. The proposed amendments to the bill, now under consideration in the House of Representatives, aim to expand the legal framework to include obligations over movable, immovable, tangible, and intangible assets.

One of the key objectives of this bill is to enable loans to be taken from banks and financial institutions by pledging movable property in addition to houses and land. The bill broadens the definition of movable property to include fixed assets other than immovable property, minerals permitted for mining, and any tangible or intangible property owned by an individual. 

Previously, banks and financial institutions only provided loans against immovable property. However, the bill proposes that, once passed, loans could also be obtained using movable property, such as livestock, agricultural crops, agricultural products, food products derived from these, and minerals permitted for mining.