Savings return is in confusion due to the fact that the authority has not achieved perfection, the data of savers who save up to 5 lakh rupees in cooperatives has not been collected.
We use Google Cloud Translation Services. Google requires we provide the following disclaimer relating to use of this service:
This service may contain translations powered by Google. Google disclaims all warranties related to the translations, expressed or implied, including any warranties of accuracy, reliability, and any implied warranties of merchantability, fitness for a particular purpose, and noninfringement.
As the National Cooperative Regulation Authority, which is supposed to be established for the regulation of cooperatives that deal mainly with savings and loans, has started its formal work, the question has arisen as to when the savers will get their money back. The government had issued an ordinance last December to regulate cooperatives and return sunk money of savers.
According to the provisions of the ordinance, the Government of Nepal has given the responsibility of the chairman to the Secretary of the Ministry of Land Management, Cooperatives and Poverty Alleviation, Arjan Prasad Pokharel, until the chairman is appointed. Along with this, with the formal opening of the authority office last Monday, Secretary Pokharel has assumed new responsibilities.
According to the provisions of the ordinance, there is a provision that the executive director of Nepal Rastra Bank and the joint secretary of the Ministry of Cooperatives should be ex-officio directors in the board of directors of the authority. According to the same arrangement, Chairman Pokharel, Executive Director of Rashtra Bank Guru Prasad Paudel and Joint Secretary Madan Koirala took the oath of office and secrecy on Monday.
Chairman Pokharel said that he got a new responsibility and he will fulfill it. "The authority has been established when there has been talk about the second level regulator for two decades. The authority is a completely autonomous regulatory body, he said, "It will be as strong and completely powerful as the National Bank." If the authority starts working with the establishment of the office, the government will start the process of appointing the chairman, expert members and chartered accountants.
In the ordinance issued by the government on December 10, there is a provision for the formation of a powerful authority for the regulation of savings and credit cooperatives. The work of the authority will be carried forward under the leadership of Secretary Pokharel until the chairman, expert members and chartered accountants are appointed.
Although the ordinance has adequate provisions for the refund of savers' money, it is not clear when the victims will get the money back. On the one hand, the government has not been able to collect the data of savers who save up to five lakh rupees in cooperatives, and on the other hand, it is not yet decided when the authority will get it completely. On the other hand, although the government has announced in the budget of the current financial year for the return of savings, neither the budget allocation has been made nor there has been a discussion about raising other resources. Therefore, experts say that there is still confusion about the return of savings. The
ordinance has special provisions for regulation of co-operative societies and recovery of sunk money of savers. "Irrespective of what is written elsewhere in the prevailing law in the ordinance, savings of up to 5 lakh rupees accumulated by members of a cooperative organization or a cooperative organization that has been declared problematic under section 104 shall be paid on first priority," the ordinance said.
In the case of savings of more than 5 lakh rupees accumulated by the member, there is a provision to pay the member's savings proportionately, if there is no situation where the related organization pays at once. For the purpose of returning the savings, the authority has the right to sell the mortgage security taken by the cooperative organization or the management committee in accordance with Section 105 of the Cooperative Act.
"Before selling the mortgage security taken by the cooperative, if the related borrowers are given time to repay the loan of the cooperative, if the loan is not paid within that period, such mortgage security auction will have to be sold," the ordinance states, The remaining amount must be paid back to the debtor who received more money.' Or other machinery tools or equipment provided by lease or rent, the government has made provision that such amount should be used only for the purpose of returning the saving amount of the saving member.
Due to the filing of a case or any other reason, the property or mortgage protection of the cooperative organization has been suspended in the court or any other body, it has not been possible to return the saving amount of the saver member by selling such property. By selling such property or mortgage security, the saver
There is a provision in the ordinance that the management committee according to Section 105 of the Cooperative Act can request the release of withholding before the relevant court or body if it is confirmed that the member's savings will be returned. If such a request is made, the relevant court or agency shall release the retention of such property or mortgage security if there is no other reason to hold it.
For the purpose of returning the saving amount of savers who are at risk, the authority will have to make a standard and time-bound return action plan and return the saving amount of the saver member.
'All expenses incurred in managing the property of a troubled organization or association will be borne by the assets of such organization or association,' the ordinance says, 'After the publication of the notification for the return of savings, the members, savers, creditors and investors of the troubled cooperatives, banks and financial institutions, A claim for the amount to be received will have to be submitted.' In the event that the management is not present in the organization, if the member's savings have not been returned due to the absence of the general meeting, at least 15% of the members of the organization must take over the assets of the organization and apply for the permission to form a savings recovery committee for the purpose of returning the members' savings. Ordinance has done.
committee for the purpose of returning the savings amount to the saver members, the amount recovered from the debtor, the amount of income received from the movable and immovable property of the organization and the details of the savings amount returned to the saver should be prepared separately and kept in a safe record. The amount recovered by the
committee from the debtor, the income received from the organization's movable and immovable property and the amount received from the sale of the organization's property will have to be submitted to the cooperative monitoring body every 3 months. According to the prevailing law on banks and financial institutions, the ordinance stipulates that a separate account should be opened in any bank of 'A' category and the amount deposited and the saving amount of the member of the saver should be paid from that account.
