‘Savings and loans not mobilized as per cooperative principles’

लगानी न्यूज

२२ असार २०८२, आईतवार १६:३३July 6, 2025

Kathmandu. Experts have argued that poverty has not been eradicated in the society due to lack of mobilization of savings and loans as per the principles of cooperatives. Experts said this at the 24th anniversary celebrations of Small Farmers Development Microfinance Institution held in Kathmandu today.

Speaking on TAG_OPEN_div_34 the occasion, Chief Economic Adviser to Prime Minister KP Sharma Oli, Dr Yubaraj Khatiwada, said that cooperatives could be the best option to end poverty. Out of the 34,000 cooperatives in the country, about 70 per cent are cooperatives related to savings and credit mobilization, he said, adding that their proper management would help reduce poverty.

According to TAG_OPEN_div_32 the Economic Survey 2081÷082 released by the Ministry of Finance, 20.27 percent of the population is still living in absolute poverty. The number of poverty in rural areas is still higher than the urban population in the country. Urban poverty is 18.34 per cent and rural areas is 24.06 per cent.

Lately, cooperatives and small savings groups have not been operating in accordance with the principles of cooperatives, so the embezzlement of savings has not stopped. Nepal Rastra Bank (NRB)’s Department of Bank and Financial Institution Regulation has prepared and implemented ‘Directives and Standards for Cooperatives dealing in savings and loans 2081 BS’ with effect from April 1, 2081.

Speaking on TAG_OPEN_div_28 the occasion, Chief Executive Officer of the organization, Dr Shivaram Prasad Koirala, talked about the examples of cooperatives and microfinance institutions where the leadership was honest and they were successful in distributing profits to their members.

Khem Bahadur Pathak, president of the organization TAG_OPEN_div_26, said that the savings and co-operative societies have become aware after the implementation of the criteria. He said that his organization has been working for young entrepreneurs through 1,710 partner organizations in 77 districts to expand wholesale loans, capacity development and technology transfer to 8.8 million members of 2.2 million families.

The Small Farmer TAG_OPEN_div_24 s Development Project has been started in Nepal since 2032÷33 BS. It has been a small farmers’ development microfinance institution since 2058 BS and was earlier registered as small farmers development bank. The company has 231 small farmers’ cooperatives, including the Government of Nepal, Agricultural Development Bank, Nepal Bank, Nabil Bank Limited and other banks and financial institutions.

The paid-up capital of TAG_OPEN_div_22 the company is Rs 4.31 billion. Banks and financial institutions own 38.9 per cent, small farmers cooperative 27.45 per cent, international financial institutions 2.36 per cent, citizens 30.06 per cent and others 1.23 per cent.

In addition, a total TAG_OPEN_div_20 of 1,710 partner organizations including 902 small farmers’ cooperatives, 808 other cooperatives and microfinance institutions are associated with this organization. Dalits, tribals, backward classes and poor small farmers are in the scope of this organization and these groups have achieved good achievements in goat, pig, buffalo, fish, poultry and vegetables and high-value crops with the financial support of the organization.

Similarly, the organization has included backward castes like Dom, Chamar, Musahar, Harijan, Dhobi, Dhawal, Chidimar, Patharkat, Paswan, Chepang, Bankaria, Raute and others. TAG_OPEN_div_18