Rapid passage of new co-operative Act advised

Kathmandu 3- Stakeholders have called for a speedy passage of the new Cooperative Act, stressing that it should include merger policy to streamline the rapidly proliferating savings and credit cooperatives amid increased incidences of complex problems.

They said that lack of proper regulation had led to an increase in financial crime. Speaking at the fifth annual general meeting of the Nepal Cooperatives Journalists Society held on Friday, Deputy Prime Minister and Minister for Cooperatives and Poverty Alleviation Chitra Bahadur KC said that the act was close to being completed, and that it would be sent to the Law Ministry for its examination.

“Once the act is endorsed, it will address the problems being faced currently like duplication of membership besides facilitating mergers,” he said. “Cooperatives are mushrooming in the country, and if the government does not act in time, the result can be severe as it can affect a large number of people.”

There are 33,000 cooperatives operating in Nepal. Among them, 11,000 are savings and credit cooperatives. They hold more than Rs150 billion in deposits of the general public.