National Cooperative Regulatory Authority Bar Defaulting Borrowers from Board Elections

7th September 2026, Kathmandu

The National Cooperative Regulatory Authority has implemented new governance standards restricting individuals who fail to settle defaulted or unauthorized loans from contesting elections for positions on the board of directors of cooperative institutions.

NCRA Bar Defaulting Borrowers from Board Elections

Regulatory Provisions and Election Restrictions

Enforcement of Standards: The decision was finalized during the Authority’s 29th board meeting, enforcing Point 1.4 of Chapter 3 under the Regulatory Standards for the Operation of Cooperatives Primarily Engaged in Savings and Credit Transactions, 2082.

Additional Loan Restrictions: The standards strictly prohibit existing cooperative directors from taking any additional loans beyond explicit regulatory permissions.

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Candidacy Bar: Directors or individuals who have taken additional loans in violation of these established regulatory standards are barred from filing candidacies for board member positions until all outstanding balances are fully settled.

Implementation Directives

Formal Notification: The Authority has issued official notices across relevant regulatory bodies and primary cooperative institutions to mandate immediate implementation and strict compliance during upcoming institutional elections.

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