”If the directors or management of a cooperative financial institution are ready to return the depositors' money and they have reliable resources and a plan, we will pave the legal way for a 'compromise'.”
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The National Independent Party has promised to conditionally release from prison the directors and managers who were jailed for defrauding cooperatives and are currently in pretrial detention.
This was mentioned in the pledge made public by Rashtriya Swayamsevak Sangh (RSS) President Ravi Lamichhane, senior leader Balendra Shah, vice-presidents DP Aryal and Swarnim Wagle from Surkhet, the capital of Karnali Province.
In the RSS' pledge made public on Thursday, the entire non-banking financial sector has been promised to replace the uncontrolled and weak regulation of the cooperative and microfinance sectors and bring them under the direct and powerful supervision system of the Nepal Rastra Bank.
RSS President Ravi Lamichhane was jailed in a case of defrauding five urban households in Kaski, Chitwan, Rupandehi, Kathmandu and Parsa. He has been released after paying bail and the amount of money in the urban household fraud. The RSS, on the other hand, has written that it will adopt a policy of keeping directors or managers who are imprisoned or remanded in custody for cooperative fraud out of jail.
The RSVP's pledge to release the directors or managers who are in jail for cooperative fraud in the event that the RSVP government is formed after the elections is written in the RSVP's pledge. 'Our aim is not only to jail the directors, but also to return the money of the savers.' Therefore, in line with the policy of 'not by shouting, but by listening', if the directors or management of any cooperative financial institution are ready to return the money of the savers and they have reliable resources and plans, we will pave the legal way for the 'compromise',' the pledge states.
The RSVP has promised to return the money of small savers within 100 days of the formation of the government under its leadership. The pledge does not mention who will return the money and how much is considered a small saver. 'To protect the hard-earned income of the common citizen, we will return the money to the savings accounts of small savers within 100 days of the formation of the government,' the RSVP pledge states.
The words written in the RSVP's pledge on cooperatives are as follows:
We will replace the uncontrolled and weak regulation of the cooperative and microfinance sector and bring the entire non-banking financial sector under the direct and powerful supervision system of the Nepal Rastra Bank. We will make cooperatives and microfinance institutions with transactions of more than 500 million rupees subject to the strict regulation of the Rastra Bank and the same standards as 'D' category financial institutions, and we will form a high-powered 'second-level regulator' for the systematic operation of small institutions.
To end the duplication and 'debt trap' in credit flow, we will link both cooperatives and microfinance with the 'Credit Information Center' to ensure that credit is flowed only on the basis of actual capacity. We will implement an automated system that allows only a few percent premium by linking the interest rate to the 'base rate' and completely eliminate high interest and unfair service charges.
In addition, we will return the hard-earned money of the common people to the savings accounts of small savers within 100 days of the formation of the government by removing cooperatives and microfinance from the unproductive real estate sector and focusing on productive, unsecured collective guarantees and local skill-based entrepreneurial loans.
To protect the earnings of savers, we will establish a 'Unified Savings Protection Fund' on behalf of the state, which will make arrangements to pay savers of distressed institutions on a priority basis, starting with small savers. Our aim is not only to jail the operators, but rather to return the money of the savers. Therefore, in line with the policy of 'solving by listening, not by shouting', if the operators or management of a cooperative financial institution are ready to return the money of the savers and they have reliable resources and plans, we will pave the legal way for 'Milapatra'. In such a situation, we will provide them with a full guarantee of savings return and a time limit, giving them the opportunity to mobilize their assets and recover their debts while remaining outside of prison.
