Governor asks co-operatives to go to rural areas
KATHMANDU:
Instead of being accumulated in the capital, the saving and credit co-operatives have been advised to venture into unbanked areas.
“The rural areas, where banks and financial institutions are yet to enter should be the work area of the saving and credit co-operatives as a means to increase rural people’s access to finance,” pointed out governor of Nepal Rastra Bank (NRB) Dr Yubaraj Khatiwada in the ceremony organised to celebrate 24th anniversary of Nepal Federation of Savings and Credit Cooperative Unions Ltd (Nefscun) here today. “The savings and credit co-operatives should not be started as the regulation free alternative of financial institutions,” he cautioned, adding that Department of Cooperatives (DoC), along with the central bank, is coming up with tighter regulation to monitor them.
“However, the large numbers of cooperatives are dabbling as saving and credit cooperative especially around Kathmandu which does not fulfill the main purpose of co-operatives,” he lamented.
The government has given special priority to co-operatives as the vehicle for economic prosperity so the co-operatives need to take as much advantage of that as they can, Khatiwada also suggested.
Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari also expressed that the government has prioritised co-operatives for its power to unite the underprivileged and deprived people creating the opportunities for them to generate means of employment. “The co-operatives can increase the productivity of agriculture sectors and contribute in making Nepal self-reliant in the areas of vegetables, meat production, poultry and so on, moreover it can provide youths the means of self-employment,” he explained.
Source: THT
Instead of being accumulated in the capital, the saving and credit co-operatives have been advised to venture into unbanked areas.
“The rural areas, where banks and financial institutions are yet to enter should be the work area of the saving and credit co-operatives as a means to increase rural people’s access to finance,” pointed out governor of Nepal Rastra Bank (NRB) Dr Yubaraj Khatiwada in the ceremony organised to celebrate 24th anniversary of Nepal Federation of Savings and Credit Cooperative Unions Ltd (Nefscun) here today. “The savings and credit co-operatives should not be started as the regulation free alternative of financial institutions,” he cautioned, adding that Department of Cooperatives (DoC), along with the central bank, is coming up with tighter regulation to monitor them.
“However, the large numbers of cooperatives are dabbling as saving and credit cooperative especially around Kathmandu which does not fulfill the main purpose of co-operatives,” he lamented.
The government has given special priority to co-operatives as the vehicle for economic prosperity so the co-operatives need to take as much advantage of that as they can, Khatiwada also suggested.
Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari also expressed that the government has prioritised co-operatives for its power to unite the underprivileged and deprived people creating the opportunities for them to generate means of employment. “The co-operatives can increase the productivity of agriculture sectors and contribute in making Nepal self-reliant in the areas of vegetables, meat production, poultry and so on, moreover it can provide youths the means of self-employment,” he explained.
Source: THT
