Cooperative Savings Refund Complaints Exceed 6,300 at KMC: Thousands of Depositors Seek Return of Cooperative Savings

2nd June 2026, Kathmandu

The growing crisis in Nepals cooperative sector has become increasingly evident as more than 6,300 depositors have filed complaints seeking the return of their savings.

Cooperative Savings Refund Complaints

According to the Cooperative Department of Kathmandu Metropolitan City, a significant number of savers have approached authorities after failing to recover funds deposited in various cooperative institutions.

The surge in complaints highlights the ongoing challenges faced by thousands of cooperative members across Kathmandu who are struggling to access their hard-earned savings. In response, the metropolitan authority has intensified efforts to facilitate the refund process and mediate between depositors and cooperative operators.

Over 6,300 Complaints Filed Since Baisakh 17

According to data released by the Cooperative Department of Kathmandu Metropolitan City, a total of 6,300 depositors have submitted applications requesting the return of their savings from cooperative institutions.

The complaints have been received since Baisakh 17, 2083, reflecting the increasing concerns among depositors regarding delayed or unavailable withdrawals.

Officials noted that the majority of complainants have savings ranging from Rs 1 lakh to Rs 5 lakh. This includes small and medium-sized deposit accounts as well as daily and monthly savings contributions. The large number of complaints demonstrates the widespread impact of liquidity and management issues affecting several cooperative institutions.

Small Depositors Most Affected

One of the most concerning findings from the departments data is that small depositors account for the majority of complaints.

According to the Cooperative Department, 78 percent of complainants are small savers. Many of these individuals deposited between Rs 500 and Rs 1,000 daily. Most affected individuals belong to low- and middle-income groups.

These savings often represent emergency funds, household reserves, education expenses, and retirement savings accumulated over many years. For many families, delayed access to their savings has created financial difficulties and uncertainty.

Kathmandu Metropolitan Intensifies Facilitation Efforts

In response to the growing number of complaints, Kathmandu Metropolitan City has accelerated its efforts to facilitate communication between depositors and cooperative institutions.

The Cooperative Department has been actively collecting formal claims from depositors and coordinating with cooperative management committees. They are also organizing discussions between stakeholders, promoting mediation and settlement processes, and assisting directly in savings recovery efforts.

Officials say the objective is to find practical solutions that can help depositors recover their funds while ensuring legal and procedural compliance.

Buddha Darshan Cooperative Returns Deposits to Members

Amid the broader challenges facing the cooperative sector, one cooperative has begun returning savings to its members.

Buddha Darshan Saving and Credit Cooperative Limited, located in Kathmandu Metropolitan City Ward No. 6, recently refunded savings to 34 depositors over two days.

According to the department, depositors with savings of up to Rs 150,000 received refunds. These payments were made on Monday and Tuesday, and additional refund plans are currently being implemented. This development is being viewed as a positive step toward addressing depositor concerns and restoring confidence among members.

More Refunds Planned for Depositors

The cooperative has reportedly committed to expanding its refund process in the coming weeks.

Officials stated that depositors with savings of up to Rs 500,000 may receive refunds within the next month. Coordination efforts are underway with relevant authorities, and recovery initiatives targeting borrowers are being strengthened.

For larger depositors, the Cooperative Department is working closely with cooperative management and borrowers to improve loan recovery and facilitate future refunds.

Challenges Facing Nepals Cooperative Sector

The recent rise in complaints reflects broader issues affecting Nepals cooperative industry. Several cooperatives have faced liquidity shortages, governance concerns, and loan recovery challenges, making it difficult to return deposits on time.

Common challenges include delayed loan repayments, weak financial management, and liquidity constraints. Cooperatives are also dealing with increasing depositor withdrawal requests alongside a general decline in public confidence.

Authorities continue to emphasize the importance of transparency, accountability, and stronger regulatory oversight to protect depositors.

Ongoing Mediation and Recovery Process

The Cooperative Department of Kathmandu Metropolitan City has stated that it is actively facilitating both savings refunds and loan recovery efforts.

The process typically involves receiving formal claims from depositors and verifying savings records and documentation. After verification, officials coordinate meetings between cooperative operators and members to facilitate mediation and settlement discussions. They also support loan collection efforts to help improve liquidity.

Officials believe that cooperative institutions, depositors, and borrowers must work together to achieve sustainable solutions.

Conclusion

The number of cooperative savings refund complaints in Kathmandu has now surpassed 6,300, highlighting the serious concerns faced by thousands of depositors waiting to recover their savings. With nearly four out of five complainants being small savers, the issue has significant social and economic implications.

While initiatives such as the refund process undertaken by Buddha Darshan Saving and Credit Cooperative Limited offer some hope, substantial efforts will still be required to address the broader challenges affecting Nepals cooperative sector. As Kathmandu Metropolitan City continues its mediation and facilitation efforts, depositors remain hopeful that their savings will be returned in a timely and transparent manner.

For More: Cooperative Savings Refund Complaints