KATHMANDU, Jan 27: The National Cooperative Regulatory Authority (NCRA) has commenced its work. The NCRA began its work on Monday with the inauguration of the office along with the oath-taking and assumption of office of the chairperson and members. The first meeting was held immediately after the oath-taking ceremony of the NCRA’s chairperson Arjun Pokharel and members Madan Koirala and Guru Poudel.
There is an arrangement to have a five-member board of directors in the NCRA. Among them, the responsibility of the chairperson has currently been assigned to Arjun Pokharel, the Secretary of the Ministry of Land Management, Cooperatives, and Poverty Alleviation.
As per the arrangement of the executive director in charge of the regulatory department of Nepal Rastra Bank, Guru Poudel has become the director.
Similarly, according to the arrangement where the Ministry's joint secretary will be a member, Secretary Madan Koirala, NCRA, is a director. As per the arrangement where the Executive Director of the Banks and Financial Institutions Regulation Department at Nepal Rastra Bank will be a member, Guru Paudel has become a director. Now, one expert related to cooperatives and one chartered accountant member are yet to be appointed to the board.
Madan Puraskar felicitation ceremony held virtually
The office of the NCRA was inaugurated on Monday. Arrangements have been set in place for the employees of the board to automatically make transition into employees of the NCRA.
The amended Cooperative Act through an ordinance has given the mandate to regulate institutions that primarily engage in savings and credit transactions. However, the criteria for regulating cooperatives primarily engaged in savings and loan operations have not yet been determined. Therefore, the first task of the NCRA will be to determine its scope.
Cooperatives are classified only according to the nature of their work. Accordingly, there are savings and credit cooperatives, multi-purpose cooperatives, agricultural cooperatives, transport cooperatives, and other thematic cooperatives. Similarly, a district cooperative association and a thematic cooperative association have also been envisaged.
Similarly, the NCRA also formulates and implements standards for the registration, regulation, supervision, monitoring and reporting system of cooperatives.
The criteria for bringing that cooperative under the regulation of the NCRA and the role of the concerned level of government in this regard are still unclear, although the amendment made through the ordinance stipulates that the authority should coordinate with the relevant local level while regulating.
Additionally, the NCRA will also handle complaints related to the return of savings or cooperative violations, conduct investigations, and provide instructions to the concerned institutions. The NCRA will also be responsible for formulating regulations in this regard.
The National Cooperative Development Board will have to increase the small number of staff. For this, it will also be responsible for preparing and approving a plan related to the staff structure. Similarly, the NCRA will also have to prepare an online platform for listing and reporting cooperatives across the country.
However, no information was given on Monday regarding work distribution of authority. Although a press briefing was scheduled by the newly appointed Chairman Pokharel, today's program was limited to the inauguration of the office, oath-taking, and assumption of office.
At the program, Minister for Land Management, Cooperatives and Poverty Alleviation Balaram Adhikari claimed that the amendment to the Cooperatives Act through an ordinance has made provisions for regulating cooperatives to be owned by all three levels of government including federal, provincial, and local. He also urged the government to look at the efforts made in a positive manner. He said that since it would take time to appoint a new chairman, the Secretary of the Ministry of Cooperatives has been given the responsibility of the board for the time being to move the NCRA forward quickly.
