KATHMANDU, August 12: The National Cooperative Federation of Nepal (NCF) has urged its member cooperatives not to distribute cash dividends to their members, citing the ongoing liquidity shortage in the cooperatives.
After the depositors of Gautam Shree Multi-Purpose Cooperative Limited filed a complaint with the Department of Cooperatives, demanding the return of deposits, the pressure to return deposits has also increased in other cooperatives. Citing the situation, the umbrella organizations of cooperatives across the country requested the cooperatives to limit the member-savers of cooperatives to withdraw only up to 5 percent of their deposits at a time.
NCF Chairman Min Raj Kandel said they have come up with an appeal to maintain the strong capital base of cooperatives amid worsening liquidity crisis.
Two weeks ago, the NCF formed a ‘cooperative facilitation mechanism’ incorporating 38 umbrella organizations of cooperatives. The panel has advised cooperatives not to distribute the cash dividend at present.