Kathmandu: The cooperative sector in Nepal is set to undergo significant reforms as a new ordinance, issued by President Ram Chandra Paudel on Sunday, enforces stricter regulations aimed at enhancing governance and transparency.
One of the key provisions of the ordinance requires individuals depositing over Rs 1 million in cooperatives to disclose the source of their funds. This measure is expected to curb illicit financial activities and promote accountability within the sector.
In addition, the ordinance establishes the National Cooperative Regulatory Authority, a governing body tasked with bridging regulatory gaps. The authority will oversee the registration, operation, and monitoring of cooperatives, ensuring they adhere to proper governance standards.
The ordinance, effective immediately, will need to secure approval from both houses of the federal parliament to become permanent law. If either house rejects it, the ordinance will automatically be voided. The President also retains the power to revoke it.
While the government views these measures as essential for stabilizing the cooperative sector, concerns have been raised about potential opposition from cooperative activists over the stringent provisions. Despite this, the ordinance is seen as a critical step towards fostering a more robust and transparent cooperative industry in Nepal.