Less than 5 percent of bad loans should be maintained, loans should be classified as good, bad, doubtful and bad based on installment interest payments and classified as active and inactive.
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The Department of Cooperatives has issued 102-point instructions for improving the cooperative sector. In the 'Integrated Directive for Promotion of Good Governance in Cooperative Organizations 2082', it is stipulated that the organization should only invest more than 3 lakhs in loans by taking personal or collective guarantee or mortgage, at least 50% of the loans should be classified by sector and invested in loan production and income-generating businesses, the difference between loans and savings (spread) should be maintained at a maximum of 6%, and when determining the interest rate, the organization should not exceed the reference interest rate set by the Cooperative Department.
The department has instructed that the organization should maintain less than 5 percent of bad loans, classify the loans as good, bad, doubtful and bad based on the installment interest payment and classify the loans as active and inactive. In the classification made in this way, there is also an instruction that the loss should be arranged based on the quality of the loan.
According to this, the department has instructed that 1 percent should be imposed on loans that have not been overdue for three months, 25 percent for bad debts that have been overdue for three to six months, 50 percent for questionable loans that have been overdue for 5 to 12 months, and 100 percent for bad debts that have been overdue for more than 12 months.
Co-operative society should not do any business without providing membership certificate to the members. There shall be no discrimination between members in matters such as dividends, interest, damages, etc.,'' the directive states, 'This provision shall not be deemed to hinder the provision of concessional interest rates to the employees working in the association subject to the procedure passed by the General Assembly.' are not If he is holding such a position, the department has instructed that he should resign immediately and fill the vacant position by election.
"In the same organization, more than one person from the same family should not be in the position of director and accounting supervision committee," the directive says, "No person can be elected as an officer of the committee of a cooperative organization at any one level for more than two terms." The charter of the organization shall be issued containing the service fee, interest, compensation, type of service, process of receiving the service, time taken to receive the service, responsible branch or employee and the terms of service.
cooperatives shall not be allowed to advertise or promote through any lottery, gift, high interest etc. to attract members, collect savings and provide loans. It is mentioned in the instructions that the organization should not keep a commission agent or make anyone collect money for shares, savings, loans or any other purpose by paying any kind of remuneration for commission.
The department has also asked the cooperative to issue a white paper with a brief description of the organization and its value activities quarterly so that its assets and liabilities are clearly disclosed. "The organization may not issue loans to members in excess of 15 percent of the primary capital fund, and cooperative organizations may not issue loans to their members with third-party collateral, except with the approval of a single-family family," the directive states, "When an organization borrows from banks and financial institutions and cooperative banks, the debtor member shall not be allowed to borrow more than the loan amount agreed to be taken from the organization."
Organizations must maintain less than 5 percent of total assets including real estate, equipment, office supplies, cash, cash, current accounts, and non-earning assets. However, 100 percent loan loss fund should be arranged for the banking assets acquired through the auction process. Such assets should be converted into liquid assets as soon as possible after 6 months.
Cooperatives must maintain liquidity of at least 15 percent of total savings at all times. Organizations that do not maintain the minimum liquidity ratio are not allowed to distribute dividends, and in the event that they do, the organization should file a reserve fund after recovering from the board of directors and managers.
