Cooperative unions barred from accepting deposits, issuing loans
Summary
The Department of Cooperatives has barred cooperative unions from accepting deposits and issuing loans under amendments to the Cooperative Act, 2017. The unions must now publish plans to return members’ savings and recover previously issued loans within three years.
Key Points
- The Department of Cooperatives has stopped cooperative unions from starting new deposit and loan transactions.
- The directive implements new provisions added to the Cooperative Act, 2017 through an ordinance and subsequent amendment.
- Cooperative unions must prepare and publish plans to return members’ savings and recover earlier loans within three years.
