Problematic cooperatives: Government plans refund of deposits to begin from third week of May

Kathmandu, May 5: The government has prepared to begin refunding deposits of problematic cooperatives from the third week of this month. 

Prior to this, the Problematic Cooperatives Management Committee gathered details of such cooperatives and depositors. 

As per the Committee's assessment, around Rs 46 billion deposits of around 76,000 customers needs to be refunded. Among them, most are small-scare depositors. 

Those with deposits of up to Rs 500,000 have been classified the small-scale customers, while those with above Rs 500,000 have been categorised as large depositors, who number is 18,000, out of 76,000, said committee member secretary Rabin Dhakal.

Minister for Land Management, Cooperatives and Poverty Alleviation, Pratibha Rawal, said that most of preparations for refunding such savings have been completed and the process will begin soon. In the first phase, priority will be given to small-scale depositors. 

The committee has prepared its procedure focusing on initiating the deposit refunds along with loans recovery. The time for reclaiming the deposits for those who miss the initial phased to claim their deposits will begin in the third week of July.

The committee has made it clear that the government will use the amount in the government revolving fund as loan provided that the respective committees fund turns insufficient in the refunding. As Dhakal said, the committee will be implementing tough policies in accordance with the law in the loans recovery. (RSS)