Problematic cooperatives to begin deposit refunds from next week; Rs 46 billion still pending

Kathmandu-The Problematic Cooperatives Management Committee has announced that it will begin returning deposits to small savers from the first week of Jestha, while simultaneously intensifying loan recovery from large borrowers.In a press briefing on Tuesday, the committee stated that around Rs 46 billion is still due to approximately 76,000 depositors across troubled cooperatives in the country. Committee Chairperson Dilliram Acharya said that both loan recovery and deposit refund processes are being carried out together, with priority given to large borrowers.

According to the committee, at least 50 percent of deposits will be returned in the first phase, based on a proportional system. In the first 11 days of its formation, the committee has recovered Rs 7.3 million from 40 borrowers and settled Rs 900,000 through deposit adjustments.Acharya stated that loan recovery is essential for deposit refunds and confirmed that support from the government and Nepal Police will be mobilized. He also warned that names of defaulters will be made public, and legal action, including arrest, will be taken if they fail to cooperate.

Currently, the committee holds around Rs 600 million, including a Rs 250 million revolving fund provided by the government. Rs 350 million recovered from loans will be used to start repayments, while separate accounts will be maintained for transactions.The committee also announced that deposit claim submissions, currently registered by about 1,050 people, will reopen in the first week of Shrawan.

Meanwhile, the Ministry of Cooperatives reported that there are 76,444 affected depositors in 20 problematic cooperatives. Of them, 58,141 are small savers with deposits up to Rs 500,000, totaling Rs 6.66 billion, while 36,522 have deposits up to Rs 100,000, totaling Rs 1.35 billion.Officials said the government has introduced a new procedure based on court orders and policy decisions, using a revolving fund mechanism. However, the state will not directly cover losses from fraud or mismanagement. An ordinance has been issued to strengthen legal action against those involved in cooperative scams.Authorities further stated that efforts are ongoing to restructure troubled cooperatives, recover loans, and ensure systematic and transparent refund processes.