Nepal Tightens Rules on Education Consultancies, Mandates Rs 2.5 Million Security Deposit

Kathmandu-The Government of Nepal has approved a new regulation aimed at tightening oversight of education consultancies, introducing stricter licensing requirements, stronger student protection measures, and greater financial transparency.

The decision was made during Monday’s Cabinet meeting, which endorsed the Education Consultancy, Language Training and Test Preparation Classes (Operation and Management) Regulations, 2083 (2026). The regulation introduces new provisions governing licensing, financial transactions, service quality, and student welfare.

Under the new rules, any institution seeking to operate as an education consultancy must deposit Rs 2.5 million (25 lakh) as a security deposit and pay a Rs 50,000 licensing fee. No consultancy will be allowed to operate without obtaining prior approval from the Ministry of Education. The operating license will be valid for one year and must be renewed annually.

The regulation also requires consultancies to employ qualified counselors who hold at least a bachelor’s degree and have completed relevant professional training. Institutions must either own their office premises or have a lease agreement valid for at least three years.

In a move to improve transparency, all payments from students must be made through banks or other digital payment systems. Cash transactions will no longer be permitted. Consultancies will also be required to provide official invoices for every payment and publicly disclose their service fees on their websites.The government’s new framework significantly strengthens student protection. Education consultancies will be held accountable if students they counsel become stranded abroad or if the foreign educational institution they recommended is later found to be fraudulent or unauthorized. In such cases, consultancies may be required to compensate affected students.

The regulation further states that students must obtain a No Objection Letter (NOC) before making tuition fee payments through banks for overseas studies.Only domestic investment will be permitted in education consultancy businesses. Existing consultancies with foreign investment must transfer ownership to domestic investors within one year.

The government has also banned education fairs and exhibitions specifically promoting overseas study opportunities. Any other educational exhibition or fair will require prior approval from the Ministry of Education.

To encourage quality service, the ministry will classify education consultancies into Grade A, B, and C based on service quality, performance, and student success rates. The ministry has also been authorized to identify high-risk foreign universities and prohibit consultancies from sending students to such institutions.

The regulation includes strict penalties for non-compliance. Consultancies that fail to renew their licenses, exploit or defraud students, disseminate misleading information, or evade taxes may face cancellation of their operating licenses and forfeiture of their security deposits.According to the Ministry of Education, Science and Sports, the regulation is intended to safeguard students’ interests, improve transparency in service delivery, and ensure more effective regulation of Nepal’s education consultancy sector.