Govt to begin refund of savings from troubled cooperatives by May end

KATHMANDU: The government is set to begin returning deposits of savers affected by troubled cooperatives by May, officials have said.

The move comes after the Problems Cooperatives Management Committee, which began work on April 22, completed initial data collection of cooperatives and depositors to prepare for repayment.

According to the committee, around 76,000 depositors are owed approximately Rs 46 billion in total. Most of them are small savers. Depositors have been classified into two categories—those who have saved less than Rs 500,000 as small savers and those above that threshold as large savers.

Out of the total, around 18,000 depositors fall under the category of large savers.

Minister for Land Management, Cooperatives and Poverty Alleviation Pratibha Rawal said preparations for repayment have reached an advanced stage and the process will begin soon.

“We have completed much of the groundwork. Small depositors will be prioritized first,” she said.

The committee has also finalized its operational framework, which includes prioritizing repayment of deposits while intensifying loan recovery efforts.

It has stated that the repayment process for claimants will begin by May, while a new window for missed claims will be opened by July.

The committee has also clarified that funds allocated by the government to the revolving fund will be used only as a temporary borrowing arrangement if necessary.

Committee Member-Secretary Rabin Dhakal said strict legal measures will be adopted for loan recovery in accordance with existing laws.