KATHMANDU: Around 11,600 cooperatives are in the process of registering with the National Cooperative Regulatory Authority (NCRA) to conduct savings and loan transactions.
The Authority has initiated the registration process for cooperatives operating savings and credit services across the country with the aim of making the sector more systematic, transparent, and reliable.
Among the cooperatives that applied online for registration, licenses have already been issued to around 3,000 institutions. The Authority is currently verifying documents submitted by the remaining cooperatives and reviewing incomplete applications.
The government established the NCRA a year ago after concerns grew over the safety of depositors’ funds due to weak regulation, monitoring, and supervision in the cooperative sector.
According to Authority Chairperson Dr. Khagaraj Sharma, documentation and monitoring of cooperatives operating under federal, provincial, and local jurisdictions have now begun.
Executive Director Keshav Raj Bhattarai said all cooperatives engaged primarily in savings and loan transactions will now be required to register with the authority and obtain a license before continuing operations.
He added that 3,646 cooperatives have submitted details for licensing but have yet to complete the required documentation process.
To strengthen regulation and oversight, the authority has also signed a cooperation agreement with the Institute of Chartered Accountants of Nepal (ICAN).
Under the agreement, the institute will assist in reviewing the financial transactions and overall financial condition of cooperatives.
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