Government to Set Up Fund to Compensate Victims of Problematic Cooperatives

The government has announced plans to establish a revolving fund to compensate depositors, with savings of up to Rs 500,000, who have been affected by problematic cooperatives.

Presenting the budget for fiscal year 2025/26, Finance Minister Bishnu Paudel stated that seed capital will be arranged for the creation of the fund, though he did not specify the amount allocated.

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

Paudel said that the assets of troubled cooperatives and their operators would be auctioned to repay depositors.

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

Additionally, he announced that savings of up to Rs 500,000 in cooperatives will be insured under the Deposit and Credit Guarantee Fund. 

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

Click here to see out budget 2025/26 coverage.