Proposed Roadmap for Cooperative Sector Reform in Nepal
Summary
A committee in Nepal has proposed dissolving the Department of Cooperatives and forming a new regulatory authority with quasi-judicial powers to reform the troubled cooperative sector and protect depositors.
Key Points
- A committee led by Govinda Bahadur Karki proposed dissolving Nepal's Department of Cooperatives and creating an autonomous Cooperative Regulatory Authority with quasi-judicial powers.
- The cooperative sector crisis is attributed to misuse of political and administrative access, poor governance, and deviation from cooperative principles.
- The report suggests prioritizing repayment to small depositors and introducing 'Cooperative Bonds' for liquidity management.
- It recommends mandatory real-time use of the COPOMIS system and implementing strict policies like 'one person, one cooperative' to prevent fraud and improve transparency.
