New Directives On Cooperatives

The Nepal Rastra Bank (NRB) has recently come up with directives and standards, 2081 for the regulation and supervision of savings and credit cooperatives to make their transactions systematic, transparent and effective. The directives and cooperatives deal with deposits, loans, investments and other relevant matters. According to the directives and standards, the cooperatives can mobilise deposits up to 15 times the primary capital fund. The primary capital fund includes paid-up capital, reserves, accumulated profits and the like. The cooperatives can also avail themselves of loans from banks and financial institutions (BFIs) and the Cooperative Bank up to five per cent of the total assets but not exceeding 100 per cent of the primary capital fund.