It has been found that the financial institutions, including the cooperatives, are still continuing to invest in unproductive sectors as real estate, the NRB said and urged the financial institutions not to make additional investment in these sectors.
Addressing the 21st General Meeting of Nepal Savings and Credit Central Cooperatives Association here today, NRB Governor Dr. Yubraj Khatiwada said, "Process would be moved forward for taking action against the financial institutions and cooperatives investing in unproductive sectors and those cooperatives working against the spirit of the cooperatives. The central bank will intervene in such cases."
The cooperatives should stick to self-regulation as per the principles of cooperatives, but some of the cooperatives are not following this rule which is a matter of concern, Governor Khatiwada said.
He said just like a river when it makes its course erodes the vulnerable and weak land, the financial criminals might also take the course of the cooperatives, and we should be cautious of that.
There are 27,000 cooperative institutions, including agriculture, health and the saving and credit cooperatives, in the country at present with 4.6 million members.
One thousand five hundred and one cooperatives associations based in 46 districts of the country are affiliated to Nepal Savings and Credit Central Cooperatives Association with a membership of over 1.5 million. The total capital of the Association has reached 40 billion.
At the function, Minister for Cooperatives and Poverty Alleviation, Eknath Dhakal, said that a new cooperatives policy has been formulated for further developing and promoting the cooperatives which is like the backbone of the national economy.
"Monitoring has begun for taking action against the cooperatives not investing the capital collected from the cooperatives in a transparent manner," he said.
On the occasion, Minister Dhakal also honoured the saving and credit cooperatives adjudged as best in performance.
Chairman of Nepal Health Service Central Cooperatives Associations, Rajendra Pandey, said that works are underway to establish a cooperative university in Dhading district.
Chairman of the National Cooperatives Board Keshav Badal and former chairman Deepak Prakash Baskota urged the cooperatives institutions to work as per the principles and objectives of the cooperatives. Association chairman Minraj Kandel chaired the function.
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