The National Cooperative Regulatory Authority, tasked with regulating, supervising, and monitoring savings and credit cooperatives, has officially started operations. The authority commenced its work on Monday following its inauguration by Minister for Land Management, Cooperatives, and Poverty Alleviation Balram Adhikari.
The government established the authority by amending the Cooperative Act, 2074 BS through an ordinance in late December. This amendment led to the dissolution of the National Cooperative Development Board and the formation of the new regulatory body.
Since the position of chairperson was vacant, the government appointed Arjun Prasad Pokharel, Secretary of the Ministry of Land Management, Cooperatives, and Poverty Alleviation, as the acting chairperson. The Act stipulates that if the position becomes vacant, the government can appoint a gazetted special class officer to serve in the role.
On Monday, Minister Adhikari administered the oath of office and secrecy to the authority’s chairperson and members Guru Prasad Poudel and Madan Koirala. Poudel serves as the Executive Director of Nepal Rastra Bank, while Koirala is the Joint Secretary at the Ministry of Land Management, Cooperatives, and Poverty Alleviation. The Authority is also required to include the Executive Director of Nepal Rastra Bank, the Joint Secretary of the Ministry of Land Management, Cooperatives, and Poverty Alleviation, two expert members, and a chartered accountant. However, the process of appointing the chairperson and expert members has yet to begin.
The Act mandates the formation of a selection committee to recommend candidates for the chairperson’s role. This committee is coordinated by the chairperson of the Public Service Commission or a designated member, along with a former governor and an individual with at least 15 years of experience in economics, finance, law, or cooperatives. The committee invites applications through a 15-day public notice and recommends three qualified candidates, from whom the government appoints the chairperson.
To qualify for the position of chairperson, an individual must hold at least a master’s degree in economics, commerce, management, accounting, law, or cooperatives. Additionally, they must have at least 15 years of experience in a national or international bank, financial institution, or cooperative, or have served as a gazetted first-class officer or equivalent position. Expert members are required to hold at least a master’s degree in economics, commerce, management, accounting, law, or cooperatives, along with a minimum of 10 years of experience in an official capacity at a national or international bank, financial institution, or cooperative. Furthermore, one member must be a chartered accountant with at least 10 years of professional experience, appointed by the government.
The Authority has been granted judicial powers equivalent to a district court and is responsible for regulating cooperative institutions primarily engaged in savings and loans. It is authorized to set standards, conduct regular inspections, issue directives, and monitor compliance. The Act also allows the Authority to delegate certain powers to provincial and local governments.
