Kathmandu: The government has announced plans to establish an integrated depositor protection fund to return savings deposited in troubled cooperative institutions.
Presenting the government’s policy and program for the upcoming fiscal year 2026/27 during a joint session of the Federal Parliament on Monday, President Ram Chandra Paudel said the new mechanism would be created to help recover and return savings to depositors affected by crisis-hit cooperatives.
According to the government, the proposed Integrated Depositor Protection Fund will work by recovering outstanding loans and using the collected funds to repay depositors whose money has been trapped in problematic cooperatives.
While reading out the policy document, President Paudel also announced that the government would strengthen the capacity of the National Cooperative Regulatory Authority to improve regulation and oversight of cooperative institutions.
“The capacity of the National Cooperative Regulatory Authority will be strengthened for effective regulation and management of cooperatives,” Paudel said. “An integrated depositor protection fund will be established to refund savings of depositors in troubled cooperative institutions through loan recovery mechanisms.”
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