KATHMANDU, Dec 30: Individuals who save more than Rs 1 million in cooperatives will now be required to disclose the sources of their funds. This new mandate follows the cooperative ordinance issued by President Ram Chandra Paudel on Sunday.
The ordinance, which will take effect as law upon certification, introduces stricter regulations for the cooperative sector. However, it will be presented to both houses of the federal parliament for approval. If rejected by either house, the ordinance will automatically be nullified. Furthermore, it has a provision allowing the President to revoke it.
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A key feature of the ordinance is the creation of the National Cooperative Regulatory Authority, aimed at bridging the current regulatory gaps in the cooperative sector. The authority will oversee the registration and regulation of all cooperatives to ensure proper governance and transparency.
While the ordinance is seen as a necessary step towards improving the sector’s stability, there are concerns that cooperative activists may oppose certain stringent provisions.Despite this, the government anticipates that the ordinance will be upheld, providing a much-needed framework for the cooperative industry.
