NRB Governor Adhikari proposes setting up of regulatory body to address cooperatives’ problems

KATHMANDU, July 8: Maha Prasad Adhikari, Governor of Nepal Rastra Bank, said the current problem has arisen in the cooperative sector as it allows unlimited accumulation of savings.

Governor Adhikari shared this view during a meeting with Surya Bahadur Thapa Chhetri, chairman of the parliamentary special committee on misuse of cooperative funds, held at Singha Durbar on Monday.

According to the Committee Chairman Thapa, Governor Adhikari pointed to the lack of geographical limitations, unlimited savings that can be collected in various ways, lack of an effective regulatory body, insufficient regulation and lack of supervision as the reasons for the current problems in the cooperative sector. Thapa stressed that the view that cooperatives should ideally be self-regulated has led the authorities to ignore the regulation and supervision of cooperatives. He therefore suggested that a regulatory body should be set up to address the problems faced by cooperatives.

In the meeting, Thapa said that he had invited Sunil KC, president of Nepal Bankers’ Association, Gunakar Bhatt, chairman of Credit Information Center and Dr Jayakant Raut, coordinator of Cooperative Sector Reform Suggestion Task Force, for the meeting to put forward their suggestions. Chairman Thapa also said that the suggestion was for setting up one Credit Information Center.