Cooperatives with more than one branch directed to close their branches

Kathmandu. The Department of Cooperatives has directed the cooperatives operating more than one branch office to close their branches. The Department has sent a letter to the National Cooperatives Federation and thematic central associations directing them to implement the recommendations of the High Level Economic Reform Advisory Commission.

According to Saroj Bhusal, Section Officer of the Department of Cooperatives, the department has issued a 6-point directive, the main priority of which is the closure of multi-branch.TAG_OPEN_p_9 The first point of the circular states that the cooperatives operating by opening more than one branch should settle their accounts and close their branches.

According to the new directive, cooperatives will no longer be allowed to make any company or organization a member.TAG_OPEN_p_8 It has been asked to strictly enforce the provision that only natural persons can be members of the cooperative.

Similarly, the total loan issued to the same person through one or more companies should not exceed 10 percent of the total share capital of the investment institution.TAG_OPEN_p_7

Savings and Credit Co-operatives are not allowed to purchase land for the purpose of sale except for their own use. For the construction of houses for the members who do not have a house, a loan can be given for the purchase of land up to a maximum area of 1,000 square meters.

In addition, savings and credit cooperatives cannot invest more than 25 percent of the total loan investment in the same purpose or sector and the loan-deposit ratio should be maintained at a maximum of 9 TAG_OPEN_p_5 0 percent.