Kathmandu. The government is to set up a ‘Circular Relief Fund’ to return savings to the members of the troubled cooperatives.
The bill designed to amend the Cooperative Act-2074 BS has proposed to establish such a relief fund. The bill has now been tabled in the parliament.
Adding Clause 108 B of the main act, the government has added a point to establish a cyclical relief fund. The main objective of this fund is to return the savings to the members of the problematic cooperatives in an easy and immediate manner.
The fund will be set up by the government in the problematic cooperative management committee. The amount received from the Government of Nepal, the amount returned as reimbursement from the concerned institution and the amount received from other sources will be deposited in this fund.
The amount received in the fund will have to be deposited by the management committee by opening a separate account in the name of the fund in the ‘A’ class commercial bank and keeping separate records of the same. A provision has also been proposed that the amount in the fund’s account will not be free at the end of the fiscal year.
It has been proposed in the bill that the amount received from the Government of Nepal in the fund should be kept separately and spent only for the specified purpose.
The management committee will have to gradually reimburse the amount received from the Government of Nepal in the fund, the movable and immovable property of the borrowers and other sources within the jurisdiction of the problematic institution. It has been proposed that the arrangement related to the operation of the fund would be as per the working procedure laid down by the Council of Ministers.
