Govt begins refund to small depositors of troubled cooperatives
Officials said this is the initial step, prioritizing depositors with smaller amounts, and refunds will continue in phases based on classification of savings.
KATHMANDU: The government has started returning savings to small depositors of problem-ridden cooperatives. The Problematic Cooperative Management Committee refunded money to 378 small savers from three cooperatives.
According to the committee, 215 depositors of Kantipur Cooperative, 156 of Shiv Shikhar Multipurpose Cooperative, and 7 of Pashupati Cooperative received their deposits in the first phase.
Officials said this is the initial step, prioritizing depositors with smaller amounts, and refunds will continue in phases based on classification of savings.
Around 76,000 depositors are owed nearly Rs 46 billion from troubled cooperatives, with a majority identified as small savers. Depositors with savings below Rs 500,000 are categorized as small savers, while those above that threshold are classified as large savers.
Minister for Land Management, Cooperatives and Poverty Alleviation Pratibha Rawal said recovery efforts from borrowers are being intensified alongside the refund process. Authorities confirmed that over Rs 20 million has already been recovered from borrowers, and both recovery and repayments will continue simultaneously.
