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ECAN Opposes Government’s Proposed Security Deposit Requirement for Educational Consultancies

Sunday, June 7 2026

Kathmandu: The Educational Consultancy Association of Nepal (ECAN) has expressed serious disagreement with the government’s proposed security deposit requirement for educational consultancy firms. ECAN President Laxman Poudel “Andrew” stated that it is inappropriate to treat educational consultancies like commercial trading businesses and impose a deposit system on them.

In an exclusive conversation with EduSawal, Poudel clarified that consultancy firms are purely service-oriented institutions that provide guidance and counseling to students and are not directly involved in handling students’ tuition fees. “Students’ fees are transferred directly to the respective universities or colleges through the banking system, so consultancies do not bear any financial liability in that regard,” he said.

According to him, the Ministry of Education has kept the registration process for new consultancy firms suspended for a long time. In such a situation, taking sudden enforcement actions and imposing penalties on existing businesses is not justified. “The registration and licensing process should first be made systematic and transparent; only then should discussions on regulation follow,” he added.

Poudel also expressed dissatisfaction with the government’s approach, claiming that no formal consultation had been held with stakeholders before introducing the proposed deposit provision. “It is not appropriate to formulate regulations affecting such a large industry without inviting the concerned business community for discussion,” he said.

The ECAN President emphasized that the association supports legal action against institutions engaged in malpractice. “Those who commit wrongdoing should certainly be held accountable, but it is unfair to view all businesses through the same lens,” he stated.

He further claimed that government agencies themselves do not possess accurate data on the number of consultancy firms operating across the country. Therefore, he argued that proper data management and a clear policy framework are necessary before introducing stricter regulations.

Poudel noted that ECAN is not only involved in sending Nepali students abroad for higher education but is also working to establish Nepal as an international study destination. As part of this effort, ECAN is preparing to organize a Global Education Summit in the near future, bringing together international universities and Nepali educational institutions on a common platform.

Expressing confidence that the government’s upcoming regulations should benefit students, service seekers, and the educational consultancy sector alike, Poudel urged policymakers to engage in extensive consultations with stakeholders before finalizing any new policies.

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