27th January 2025, Kathmandu
Cooperatives Minister Balram Acharya has announced that the Credit Information Center and the Savings and Credit Protection Fund are now operational.
Nepal Cooperative Regulatory Authority
Speaking at the inauguration of the National Cooperative Regulatory Authority, he emphasized that these measures will address the challenges in Nepal’s cooperative sector.
Regulatory Authority Begins Operations
The National Cooperative Regulatory Authority has started functioning under the temporary leadership of the Secretary of the Ministry of Land Management, Cooperatives, and Poverty Alleviation. Minister Acharya noted that appointing a permanent chairperson will take time, but the authority will continue its work without delay.
The authority has been given judicial powers equivalent to a district judge. Dissatisfied parties can appeal decisions to the High Court. The minister also assured stakeholders that laws will be amended as needed to adapt to new challenges. He acknowledged that the Cooperative Act 2018, though well-designed, needed updates for effective implementation.
Cooperative Sector Needs Reforms
National Cooperative Federation Chairperson Om Devi Malla highlighted long-standing issues in the cooperative sector. She stated that while provisions like the Credit Information Center were included in the 2018 Act, they were not implemented on time. Malla also criticized current savings limits, which favor cooperatives with national networks over local ones. This, she argued, goes against the community-based nature of cooperatives.
Enhancing Governance and Accountability
Chandra Prasad Dhakal, Chair of the Savings and Credit Central Cooperative Union, welcomed the new regulatory framework. He expressed confidence that it will strengthen governance, ensure transparency, and improve accountability in the sector.
Secretary’s Commitment to Solutions
Secretary Arjun Prasad Pokhrel, who also serves as the Regulatory Authority Chair, pledged to resolve issues in the cooperative sector. He was appointed to this role on January 20, 2025. Pokhrel affirmed that the authority will follow Nepal Rastra Bank’s operational standards to promote financial discipline and stability.
Pokhrel stressed that cooperatives are vital for financial inclusion and national development. While economic disruptions are inevitable, he said cooperative-led solutions can address challenges and maintain stability.
Moving Forward with a Strong Foundation
The Cooperative Regulatory Authority marks a significant step toward reforming the sector. It is expected to address financial issues, improve governance, and support Nepal’s broader economic goals.
Minister Acharya stated that the government aims to show visible progress in solving cooperative problems within the next two years. This initiative provides hope for strengthening cooperative economics and financial inclusivity across the country.
For more: Nepal Cooperative Regulatory Authority
