The Department of Cooperatives in Nepal has officially prohibited cooperative federations from initiating any further savings or lending operations. This directive enforces Section 50(9) of the Cooperatives Act of 2017. Under these new regulations, district, provincial, and central federations currently engaged in financial services are required to transition their activities within a three-year timeframe. During this period, they must either merge with an existing cooperative bank or collaborate to form a new one. Furthermore, these organizations are mandated to develop and disclose comprehensive strategies for the repayment of member savings and the collection of outstanding loans. Additionally, all affected entities are required to finalize their financial audits, conduct general assemblies, and establish a clear accounting of their total assets and liabilities by the conclusion of the current fiscal year in Poush.
Source : Online Khabar
Photo : Online Khabar
