KATHMANDU: The National Cooperative Regulatory Authority (NCRA) has announced that no savings or credit cooperative can operate without formal registration, introducing new standards to make the sector more organized, transparent, and accountable.
Under the new directive, cooperatives conducting financial transactions without registration may face fines of up to Rs 1.5 million or risk cancellation of their registration. Previously, many cooperatives collected deposits and issued loans without formal registration, creating risks due to the lack of oversight. Now, all such institutions must obtain legal approval and renew their registration annually.
The NCRA has also specified annual renewal fees based on cooperative capital. Institutions with capital up to Rs 20 million must pay Rs 1,000, those with Rs 20–100 million pay Rs 3,000, Rs 100–250 million pay Rs 5,000, Rs 250–500 million pay Rs 7,000, Rs 500 million–1 billion pay Rs 10,000, and cooperatives with capital above Rs 1 billion must pay Rs 15,000. Registration fees are also required during the initial registration process.
All savings and credit cooperatives operating at the federal, provincial, and local levels are now required to register and submit records with the NCRA. The authority said the move will bring cooperatives under a single regulatory body, helping to integrate and monitor activities nationwide.
According to the NCRA, this step is crucial for promoting good governance, transparency, and the protection of member investments, while also enforcing financial discipline and reducing risk. Regular renewal will allow the authority to collect timely data, identify weak or high-risk cooperatives, and ensure accountability across the sector.
Comment