KATHMANDU, Feb 14: The Rastriya Swatantra Party (RSP) has suggested the government to halt the registration of savings and credit cooperatives for at least one year.
While submitting a study report on Tuesday, the team including RSP President Rabi Lamichhane and Vice President Dr Swarnim Wagle suggested Prime Minister Pushpa Kamal Dahal to halt the registration.
The report on the crisis and solution of cooperatives and microfinance institutions has also asked cooperatives to stop investing in non-productive sectors such as real estate.
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RSP has also suggested immediately establishing a Cooperatives Deposit and Credit Guarantee Fund to safeguard commoners’ money deposited in savings and credit cooperatives like the Federal Deposit Insurance Corporation of America.
The cooperatives that are unable to pay the members' savings are declared to be in trouble and a management committee is formed according to Section 105 of the Cooperatives Act to collect and study, analyze, account and evaluate the assets and liabilities of the organization and sell the assets and return the savings of the cooperative members. According to Section 105 of the Act, ‘In case any Organization or Association has been declared as the problematic Organization or Association under this Act, Government of Nepal may form a Management Committee to manage the assets and pay the liabilities of such Organization or Association.’
RSP has also asked to bring the regulation of cooperative organizations with more than Rs 500 million turnovers under Nepal Rastra Bank (NRB). The party has also asked to monitor all the cooperatives across Nepal and classify them into three categories within three months.
