Section 12 of the Constitution of Nepal (2015) was written in such a way that requires the Nepalese Citizenship Certificates to include gender identity (as opposed to just gender). This provision only applies to the first Nepalese Citizenship Certificate issued, not to an already-issued certificate. However, the decision of Sunil Babu Pant, Anik Ranamagar and others v. Government of Nepal (2017), ruled that existing citizenship certificates should also be amended.
Nepal began issuing passports with “third gender”/“O” markers, after the Supreme Court decision Dilu Dibuja v. the Ministry of Foreign Affairs (2017) ordered that a transgender person should be given a passport that matched their Nepalese Citizenship Certificate.
In 2019, Nepal’s House of Representatives proposed a bill to amend the Citizenship Act that would impact the rights of trans persons. The bill proposed an onerous proof of "sex change" as a requirement for a person to obtain a change of gender marker on their Nepalese Citizenship Certificate. This goes in contradiction with the above Supreme Court cases.
In addition, many transgender people who have applied for a gender change have been able to see their gender marker changed on behalf of the civil status.