December 30, 2024
kathmandu – President Ramchandra Paudel on Sunday issued an ordinance amending some laws on cooperative societies in Nepal.
Spokesperson of the Presidential Office Shailaja Remy Bhattarai said that the President promulgated the decree in accordance with Article 114 (1) of the Constitution on the recommendation of the Council of Ministers.
The Cabinet meeting held last Tuesday decided to propose a decree related to cooperatives and recommend it to the President.
The ordinance established the National Cooperatives Regulatory Authority to regulate savings and credit cooperatives, abolished the National Cooperatives Development Board and mandated priority return of depositors' savings up to Rs 5 lakh.
It authorizes the sale of collateral to repay loans if borrowers fail to repay their debts, ensures transparency in the registration and classification of cooperatives, and regulates personal savings and credit limits.
Under the new rules, cooperatives can raise funds to repay deposits by leasing or selling assets. These measures are designed to protect savers while promoting accountability within the cooperative sector.
