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NRB furnishes five-point suggestions to address problems of problematic cooperatives


08 July 2024  

Time taken to read : 3 Minute


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KATHMANDU: The Nepal Rastra Bank (NRB) has presented five-point suggestions to address the problems of problematic financial cooperatives.

In today’s meeting of the parliamentary probe special committee formed regarding misuse of savings of depositors in financial cooperatives, NRB Governor Maha Prasad Adhikari shared that problems seen in the cooperatives sector could be resolved by following the five-point suggestions.

Governor Adhikari suggested returning the savings of the depositors in three phases.

He suggested that savings up to Rs 100,000 of the depositor could be returned in the first phase, up to Rs 500,000 in the second phase and more than Rs 500,000 in the third phase.

The NRB has forwarded a proposal to form a dedicated group to resolve the problem as well as to move ahead following the measures adopted while addressing the problems of problematic banks.

He advised that necessary arrangements should be made on the issue of cooperatives that have functioned without restriction of geography.

Similarly, the Chief Executive Officer of Credit Information Bureau, Anil Chandra Adhikari suggested arranging an integrated Information System at the Bureau.

The establishment of a separate information bureau on the issues of insurance and cooperatives was suggested in the meeting.

Alerting about possible problems to be surfaced in other financial institutions like that of cooperatives, the President of Nepal Bankers’ Association, Sunil KC emphasized on the need to resolve the problems soon.

Coordinator of the erstwhile cooperative suggestion task force, Dr Jay Kanta Raut, explained that the problem is increasing in the cooperatives sector due to a lack of implementation of the suggestions.

Most of the financial cooperatives are operating against cooperatives norms, values and principles are in problems, he added.

Experts emphasized on the need to establish a Credit Recovery Tribunal in the financial cooperatives sector.

On the occasion, the Chairperson of the Special Committee Surya Bahadur Thapa said the Committee has not started a discussion on whether the government should pay the victim cooperatives’ depositors.

The discussion was underway keeping it in mind that returning the savings of depositors was the main responsibility of cooperatives.

Officers who had already worked as a registrar of the Cooperative Department after 2048 BS have been invited to tomorrow’s meeting.

Similarly, discussion would be held with the financial cooperatives’ victims in other meeting.

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