President Ramchandra Paudel has issued an ordinance aimed at regulating cooperatives and returning the sunk money of savers. On Sunday, President Paudel issued the ordinance with approval.

With this, the way is now open for the government to implement the ordinance. The government decided to amend some laws related to cooperatives through an ordinance last Tuesday.

according to which the decision to amend the Cooperatives Act, 2074, the National Bank Act, 2058 and the Deposit and Credit Protection Fund Act, 2073 has been decided by the Cabinet meeting. The same ordinance was issued by the President.

The government is going to repeal the National Cooperative Development Board Act, 2049 through an ordinance. The Ordinance provides that the assets, liabilities and employees of the National Cooperative Development Board, including movable and immovable assets, will be automatically transferred to the Authority. In the

ordinance, provision has been made to establish a powerful National Cooperative Regulatory Authority to regulate savings and loan cooperatives. The Ordinance also provides for settlement of other criminal, asset laundering and organized crime cases pending in the court, registration and classification of cooperatives, limits on personal savings and loans, membership in credit information center, establishment of cooperative credit and protection fund, etc.

Ordinance has special provision for refund of savings. Regardless of what is written elsewhere in the prevailing law, the ordinance stipulates that the savings of up to five lakh rupees accumulated by members of cooperative organizations or cooperative organizations that have been declared problematic according to section 104 shall be paid on first priority. In case of savings of more than five lakh rupees accumulated by the members, the concerned organization should make a standard and make arrangements to pay the member's savings proportionally if it is not possible to make a one-time payment.

For the purpose of returning the surplus, the ordinance also provides that the management committee of the cooperative organization or the management committee according to section 105 of the cooperative act can sell the mortgage security taken while providing the property or loan of such organization.

Similarly, before the sale of the mortgage security taken by the cooperative when granting the loan, the related borrowers are given time to repay the loan of the cooperative organization, if the loan is not paid within that period, such mortgage security auction will have to be increased and sold. There is a provision that if the amount of money received is more than the amount owed by the debtor during the sale of such mortgage security, the amount of the debtor is paid and the remaining amount must be returned to such debtor.