Kathmandu. The government has put forward a provision that cooperatives should also protect the deposits of savers to protect the deposits of cooperatives. The government has tried to implement mandatory legal provisions to protect both the loans issued by the cooperatives and the savings collected from the members by amending the provision in the Cooperative Act.
This provision has been proposed in the draft of the bill designed to amend the Cooperative Act-2073 registered by the Ministry of Land Management, Cooperatives, Federal Affairs and General Administration in the House of Representatives. According to Section 101 (1) of the main act, the co-operative society carrying out the business of savings and loans under the Cooperative Act should secure the safe membership of the deposit and credit security fund established under the prevailing law.
Similarly, sub-section (2) of Section 101 includes the provision that the cooperatives carrying out the main transaction of savings and loan should provide the updated details of the security of savings and loans by taking membership pursuant to sub-section (1) to the Authority and other cooperatives to the Department.
In addition to this, the Department shall coordinate with the Credit Information Centre in the case of the cooperatives which are the main transaction of savings and credit as per the sub-section (5) of Section 81. However, in the case of cooperatives having jurisdiction of the province and local level, provisions have been proposed in the draft to be made in accordance with the law related to cooperatives of the concerned province and local level.
The bill registered in the House of Representatives on June 5 will be submitted to the President for authentication after it is endorsed by the House of Representatives and National Assembly. It will be recognized as a law only after it is red-sealed by the President and published in the Gazette.
