Policies and Programmes: Govt to Establish Fund Under Cooperatives Regulatory Authority to Refund Victims

The government has unveiled plans to create a dedicated fund under the National Cooperatives Regulatory Authority to reimburse depositors impacted by struggling cooperatives.

In his address to the joint session of the federal parliament, President Ramchandra Paudel highlighted that the fund will prioritize returning savings to depositors with smaller amounts in financially distressed cooperatives. Paudel was presenting the government’s policies and programmes for FY 2025/26.

Read: Rs 10 Billion Required to Refund Depositors of Problematic Cooperatives: Commission

The policy document also outlines an overhaul of the existing cooperative policy, with the introduction of a revised framework. Additionally, the government plans to implement an electronic information system to better organize and manage cooperative data.

Read: NRB Issues Strict Guidelines to Regulate Savings and Credit Cooperatives

Although a similar commitment was made in the current fiscal year to refund depositors with savings of less than NPR 500,000, many victims claim the promised reimbursements have not been fulfilled, leading to ongoing protests.

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