Social Organization. A caste system prevails, with the Brahmans and Chhetris occupying a very high position in it.
Political Organization. Village political life tends to follow its own dynamic, regardless of changes in the national political scene. Village affairs tend to be managed by formal or informal councils of village elders in which Brahmans and Chhetris, by virtue of their status as landholders and their relatively higher education, often play prominent roles. Nationally the king, whose ancestor unified the country in roughly its present form at the end of the eighteenth century, has always been a Thakuri, an aristocratic section of Chhetris. The Rana family, which provided all prime ministers from 1846 till 1950 and is still powerful in the government and army, is also Chhetri. The movement to overthrow the Ranas and subsequent political movements aimed at democratic or socialist reform have frequently been led by Brahmans and Chhetris.
Social Control. Until 1963 Nepal's Mulki Ain (national code) explicitly stated which activities were proper for each caste group and prescribed penalties for infractions of the law. Since the code's revision in 1963, the Mulki Ain treats all citizens equally under the law.
Conflict. Those conflicts that cannot be settled through informal means at the village level are referred to the legal and judicial system of Nepal.