Government to Auction Assets of Cooperative Fraudsters; Revolving Fund to Reimburse Depositors

The government has announced the creation of a revolving fund aimed at reimbursing savings deposited in troubled cooperatives. Finance Minister Bishnu Prasad Paudel revealed this initiative during the budget presentation for Fiscal Year 2025/26.

Minister Paudel stated that deposits up to Rs. 500,000 in cooperative institutions will be protected under the Deposit and Credit Protection Fund. To support this, seed capital has been allocated for the revolving fund, which will be financed by proceeds from the auction of assets seized from individuals who have misappropriated government funds.

Furthermore, the government plans to freeze the assets and passports of operators, officials, and loan defaulters associated with problematic cooperatives to prevent further misuse.