Kathmandu- The National Cooperative Federation of Nepal has drawn attention to the government’s ‘Ordinance to Amend Certain Acts of Nepal Related to Cooperatives,’ issued on 14th Poush.
The Federation praised the positive steps taken by the government to address problems related to cooperatives. However, it stated that certain provisions incorporated in the ordinance could weaken the cooperative movement and urged the government to make immediate changes to these provisions.
The Federation welcomed the move to incorporate the Credit Information Center and the Deposit and Credit Protection Fund into the existing structure and to establish the National Cooperative Regulatory Authority. This is expected to make it easier to ensure the return of members’ savings. However, the Federation has expressed concerns that provisions such as setting limits on personal savings, limiting the term of directors, and mobilizing the Cooperative Promotion Fund could adversely affect the services and effectiveness of cooperative organizations.
The Federation has urged the government to implement more effective reforms to make the cooperative movement sustainable and strong. It has also stated the necessity to amend the controversial provisions through a replacement bill. The Federation believes the government should seek advice and suggestions from all sectors to strengthen and make the cooperative sector more inclusive.