NCRA to outline frameworks for self-regulation of cooperatives

KATHMANDU, JANUARY 31 : National Cooperatives Regulatory Authority (NCRA) Chairperson Arjun Prasad Pokharel emphasized that the Authority is working on establishing frameworks for the self-regulation of cooperatives across Nepal. Speaking during an interaction with journalists and cooperative advocates, following the recent establishment of the NCRA, Pokharel stressed that cooperatives must operate under self-regulation principles. He also cautioned that cooperatives failing to adhere to these principles would face consequences.

Pokharel, who is also the Secretary of the Ministry of Land Management, Cooperatives, and Poverty Alleviation, highlighted that the Authority is focused on creating regulatory frameworks and guidelines for monitoring and supervising cooperatives. Since assuming office, the first meeting of the NCRA made 15 key decisions aimed at reforming and regulating the cooperative sector.

Pokharel also revealed that over 600 individuals involved in fraudulent cooperatives are currently serving jail sentences, while around 1,500 others remain at large. The Authority is working to develop a framework to ensure that depositors’ savings in cooperatives are protected and refunded. He reiterated that one of the Authority’s main goals is to ensure good governance in the approximately 34,000 cooperatives under the jurisdiction of federal, provincial, and local governments.

Om Devi Malla, Chairperson of the National Cooperative Federation of Nepal, raised concerns about the delay in establishing the Loan Information Centre, as mandated by the Cooperatives Act-2074 BS, which has left millions of cooperative funds at risk. However, she acknowledged that the formation of the Debt Recovery Authority has led to successful recoveries of funds deposited in cooperatives.

Chandra Prasad Dhakal, Chairperson of the Nepal Federation of Savings and Credit Cooperative Unions Ltd (NEFSCUN), pointed out that while the recent ordinance aimed at resolving challenges in the cooperative sector, it failed to address the critical issue of repaying depositors’ savings.

Similarly, Uddhav Sapkota, Chairperson of the Bagmati Province Savings and Loans Cooperatives Federation, argued that limiting the jurisdiction of cooperatives based on geographical boundaries is inappropriate and called for amendments to the ordinance.

This ongoing dialogue underscores the regulatory challenges and reforms in Nepal’s cooperative sector, with an emphasis on improving governance, protecting depositors, and ensuring the sector’s long-term stability.