The new cooperative regulation ordinance from the Nepali government was forwarded to the president

INN/Kathmandu, @Infodeaofficial

The government’s new cooperative ordinance, which lays out rules for managing cooperatives and recovering member funds, will be presented to the president today. The council of ministers in Singhdurbar, Nepal, resolved to do away with the National Cooperative Development Board and suggest to the president that an ordinance be introduced to control cooperative institutions.

A parliamentary committee looking at cooperatives made recommendations that led to the ordinance. It establishes requirements for the repayment of savings up to Rs 500,000 that have been placed in cooperatives. A National Cooperative Regulatory Authority, which will be autonomous and self-governing, is also established by the legislation. The Nepal Rastra Bank’s guidelines will be adhered to by the authorities.

There are now three levels of savings and credit cooperatives, and local registration will be the first step. Individual savings and loans are also subject to restrictions under the ordinance: Rs 1 million for cooperatives operating in a district, Rs 2.5 million for cooperatives operating in a province, and Rs 5 million for cooperatives operating nationally.

Prithvi Subba Gurung, the official spokesperson for Nepal and Minister of Communication and Information Technology, explained that all parties implicated in cooperative fraud instances would be the subject of investigations, regardless of their political party. The chairperson, secretary, and other commission members are covered by the ordinance. The ordinance will take effect after it is issued by the president and published in the national gazette. The next winter session of the Federal Parliament must also approve it.