Savings Up to NPR 500,000 in Cooperatives to Be Secured; Government to Establish Fund with Seed Capital

Kathmandu, May 29 – The Government of Nepal has announced that savings of up to NPR 500,000 made by members of cooperative institutions will be secured through a credit and deposit protection mechanism.

Presenting the budget for the fiscal year 2082/83, Finance Minister Bishnu Prasad Paudel stated that a special fund will be established to return deposits to cooperative savers, and the government will contribute seed capital to this fund.

The budget also includes provisions for classification, consolidation, and structural reforms within the cooperative sector to make it more organized and trustworthy.

For troubled cooperatives, the government has announced that deposits will be refunded by liquidating the assets of the institution and its management. Legal procedures will be initiated to ensure depositor protection and accountability.

This move is expected to help restore confidence in the cooperative sector, which has recently faced growing concerns over financial mismanagement and deposit security.