The total savings of citizens in cooperative organizations across the country have been Rs. 1.125 trillion. The National Cooperative Authority has stated that Rs. 1.125 trillion has been collected in savings (deposits) and Rs. 923 trillion in loans have been invested in about 32,000 cooperative organizations in operation. 

The 'Cooperative Sector Status Report' made public by the authority shows that 10.9 million citizens have been affiliated with cooperative organizations so far. 90,265 people are directly employed. 'The seven-decade-long cooperative campaign has become an important basis and medium for the country's socio-economic mobilization. The role played by the cooperative sector in raising the basic living standards of the people in a country with a predominantly rural economy is commendable,' the cooperative sector status report states.

The numerical and quantitative expansion of the cooperative sector, which is recognized as an important pillar of the economy in the constitution, has not been satisfactory. Various types of complications have also been developing in this sector. The current situation has arisen due to various types of complications and problems that have arisen during the seven decades of development in the cooperative sector, the status report concludes. 

‘Some cooperatives are unable to return the savings of savers, there is no significant progress in the recovery of loan investments made to members, there are shortcomings in the observance of the values ​​and principles of cooperatives, there is a big difference in the essence and behavior of cooperatives, and the lack of quality cooperative education has prevented the attraction and responsibility towards cooperatives from increasing,’ the position paper says. ‘Due to increasing problems and complexities, there has also been a misconception that the entire cooperative sector has become problematic. In this situation, the authority needs to be more active in reducing the risks of the cooperative sector in the coming days.’

According to government data, the number of cooperatives that were less than one thousand by the time the Cooperative Act 2048 was issued has now reached 32,965. Of these, it is estimated that about 14,000 are cooperatives engaged in savings and loans. Experts estimate that the number of cooperatives that mainly engage in savings and loans is more than 14,000, as some registered as thematic and multi-purpose cooperatives are also engaged in savings and loans. 

‘The entire cooperative sector spread across the country has mobilized about 1268 billion rupees in capital through shares and savings, providing direct employment to about 90,000 people and making more than 19 million people members of cooperatives,’ the position paper states, ‘However, there is a need to ensure the method and source of accurate and regular data collection related to cooperatives.’

The federal government has so far declared 23 cooperatives problematic. Of these, three have already been declared problematic. These cooperatives are organizations with few savers and low total savings. Currently, the asset management and liability payment of 20 cooperatives is under the responsibility of the working committee. 

74,307 members of those cooperatives have demanded the return of 44 billion 489 million 5,626 rupees in savings. Of this, 4 billion 1266 million 5,654 rupees have been returned so far, according to the office. It has been 8 years since the formation of the problematic cooperative management committee. During this period, most of the savers of the problematic cooperatives have not been able to get their money back.

According to the Special Parliamentary Investigation Committee on the Misuse of Cooperative Savings, formed earlier under the coordination of UML leader Surya Thapa, 40 cooperatives operating in major cities alone have misappropriated Rs 87.89 billion from the general public. 40 cooperatives, including 22 problematic ones and 18 that have raised public questions, have liabilities of Rs 87.89 billion, including savings of Rs 71.30 billion. However, the report states that the basis for raising loans, interest on loans, investments made elsewhere, and non-banking assets is weak.

Of the 22 problematic cooperatives, 13 have disbursed loans of Rs 21.37 billion, 89 million, 427 million, against the law. 18 cooperatives that have raised public questions have disbursed loans of Rs 32.40 billion, 61 million, 19 thousand. Out of these, 6 cooperatives have disbursed loans of Rs 6.85 billion, 24 million, 14 thousand to individuals and organizations related to the Gorkha Media Network. The report states that 18 and 13 have disbursed loans of Rs 53.78 billion, 51 million, 16 thousand, 196 million.