NRB Governor for returning cooperative deposits in phase-wise manner

KATHMANDU: Nepal Rastra Bank (NRB) has prescribed various measures to resolve issues with problematic cooperatives.

Speaking at a meeting with the parliamentary special inquiry panel formed to study the misuse of cooperative deposits, NRB Governor Maha Prasad Adhikari said people’s deposits parked in cooperatives can be returned in three phases. “Deposits of up to Rs 100,000 can 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,” Adhikari suggested.

The governor also suggested that a dedicated team be formed to solve problems in the same way the central bank resolved issues with problematic banks. He added that necessary policy arrangements must be made for cooperatives doing transactions going beyond geographical limits.

Anil Chandra Adhikari, CEO of the Credit Information Bureau (CIB), stated that the bureau can handle cooperatives if necessary policy arrangements are made. He suggested implementing an integrated information system in the CIB for this purpose. He was responding to suggestions that a separate entity should be established to exchange information about cooperatives and insurance companies.

Sunil KC, president of the Nepal Bankers Association, said that problems with cooperatives should be addressed soon as they could affect banks and financial institutions if not managed on time.

Experts recommended that the government form a separate regulatory body for cooperatives. They also suggested establishing an entity similar to the Debt Recovery Tribunal for the cooperative sector.