The national commitment prepared in accordance with the manifestos and commitments of the six major political parties made public by the government states that cooperatives and microfinance will be brought under the supervision of Nepal Rastra Bank.
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The non-banking financial sector is to be brought under the direct and powerful supervision system of Nepal Rastra Bank by replacing the uncontrolled and weak regulation of cooperatives and microfinance.
This is stated in the national commitment prepared in accordance with the manifestos and commitments of the major 6 political parties made public by the government.
Cooperatives and microfinance will be linked to the Credit Information Center and loans will be disbursed only on the basis of actual capacity, and the focus will be on productive, unsecured collective guarantees and entrepreneurial loans based on local skills. The regulation and standards of cooperatives will be formulated by the federal government and the provincial and local levels will make the cooperative registration, records and good governance system effective.
‘Cooperative registration, reporting, monitoring and information systems will be fully digitalised and their access to national and international markets will be expanded through commercialisation, branding, quality certification and e-commerce,’ the national commitment states, ‘Employment and self-employment will be created through cooperatives targeting youth, women, workers and marginalised communities.’
The government is also preparing to establish an integrated savings protection fund to protect the earnings of cooperative savers and make arrangements to pay savers of distressed institutions on a priority basis. In addition, the national commitment states that meter badges and unfair transactions will be defined as economic crimes and that all past Tamsuks and Kapali Tamsuks will be investigated judicially. The government is also preparing to provide free legal aid and psychosocial counselling at the local level for victims who have suffered mental and physical torture due to meter badges and microfinance.
