The proposal to amend the Nepal Rastra Bank Act has been passed by the House of Representatives (HoR), paving the way for the central bank to regulate cooperatives whose transactions are above Rs 500 million.
On the recommendation of the Cooperative Department, the HoR of the Federal Parliament has passed the proposal to amend the Nepal Rastra Bank Act. This empowers the central bank to regulate, inspect, and supervise cooperative organizations with a share capital or an annual turnover of more than Rs 500 million.
On Wednesday, the HoR endorsed the Anti-money Laundering and Business Promotion Bill, amending the Nepal Rastra Bank Act through the same bill.
The Government of Nepal had registered an amendment bill in parliament, proposing that the NRB can regulate, inspect, and supervise cooperatives whose main business involves a share capital of more than Rs 250 million or savings and loans of more than Rs 500 million per annum.
The Law, Justice, and Human Rights Committee of the House of Representatives (HoR) revised this proposal, submitting a report that allows the NRB to oversee cooperatives with a turnover exceeding Rs 500 million.
By amending the Cooperative Act, the government registered a draft amendment to the Act to set the limit of deposits in cooperatives at Rs 2.5 million.
Amending the bill registered by the government, the HoR passed the bill by removing the provision that cooperatives cannot take deposits of more than Rs 2.5 million.
The Parliamentary Committee amended the bill to weaken the role of the NRB so that the central bank can only regulate, inspect, and supervise financial cooperatives based on their governance and risk at the request of the Cooperative Department. The amendment was passed by the HoR.
The bill passed by the HoR will come into force after it is passed by the National Assembly and approved by the President.
