Nepal Government to Bring Cooperatives and Microfinance Under Central Bank Oversight
Summary
The Nepal government will bring cooperatives and microfinance institutions under the direct supervision of Nepal Rastra Bank with new policies to protect depositors and regulate lending practices.
Key Points
- The Nepal government has announced that cooperatives and microfinance sectors will be supervised by Nepal Rastra Bank.
- All cooperatives and microfinance institutions will be linked to the Credit Information Bureau to verify borrowers' repayment capacity.
- An Integrated Savings Protection Fund will be established to refund depositors from crisis-hit cooperatives.
- Usury and unfair transactions will be defined as economic crimes with strict actions and support including legal aid for victims.
