NRB Governor Adhikari suggests creating regulatory body to solve problems of cooperatives

KATHMANDU, July 8: Maha Prasad Adhikari, the governor of Nepal Rastra Bank, has said that the present problem has arisen in the co-operative sector because of allowing unlimited savings collection.

Governor Adhikari shared this opinion during a meeting with Surya Bahadur Thapa Chhetri, chairman of the Parliamentary Investigation Special Committee on Misuse of Cooperative Funds, held at Singha Durbar on Monday.

According to the Committee’s Chairman Thapa, Governor Adhikari pointed out the lack of geographical limits, unlimited savings to be collected in various ways, absence of an effective regulatory body, insufficient regulation, and lack of supervision as the reasons behind the present problems in the cooperative sector. Thapa emphasized that the notion that cooperatives should ideally be self-regulated has led the authorities to ignore the regulation and supervision of cooperatives. Therefore, he suggested that a regulatory body should be established to address the problems faced by cooperatives.

In the meeting, Thapa stated that he had invited Sunil KC, president of the Nepal Bankers’ Association, Gunakar Bhatt, chairperson of the Credit Information Center, and Dr Jayakant Raut, coordinator of the Cooperative Sector Reform Suggestion Task Force, to a meeting for their suggestions. Chairperson Thapa also said that the suggestion was made to have a single Credit Information Center.