Government to Return Savings to Small Depositors of Distressed Cooperatives

The government has announced plans to address the plight of distressed cooperative institutions by returning the savings of small depositors whose properties were seized due to mismanagement. 

During the budget presentation for the fiscal year 2081/82 in the joint session of the Federal Parliament, Finance Minister Barsha Man Pun disclosed plans to alleviate the challenges faced by distressed cooperative institutions. The government aims to achieve this by returning the savings of small depositors whose properties were seized due to mismanagement, with refunds extending to depositors with savings up to 5 lakhs.

Minister Pun outlined the government's commitment to establish a regulatory framework in line with cooperative principles and policies for the operation of cooperatives. Additionally, he emphasized the establishment of regulatory bodies to oversee the operations of savings and credit cooperatives and facilitate mergers and acquisitions to streamline their functioning.

The announcement comes as a relief for small depositors who had faced financial setbacks due to mismanagement in cooperative institutions, providing a pathway for the recovery of their savings and enhancing regulatory oversight to prevent similar occurrences in the future.