Nepal’s Bagmati Province Starts Repaying Small Depositors of Crisis-Hit Cooperatives

The Bagmati Province government has launched the first phase of refunding deposits to small savers affected by Nepal’s cooperative crisis, providing long-awaited relief to victims of financially troubled cooperatives. Chief Minister Indra Bahadur Baniya officially inaugurated the refund programme on Tuesday at the Bagmati Province Good Governance Centre in Jawalakhel by distributing nearly Rs 1.7 million to 42 depositors.

The initial refunds cover depositors from five cooperatives declared financially distressed: Civil Savings and Credit Cooperative, Darshan Savings and Credit Cooperative, Sumeru Savings and Credit Cooperative, National Namobuddha Savings and Credit Cooperative, and Laligurans Savings and Credit Cooperative. According to the Office of the Problematic Cooperative Management Committee, these institutions collectively owe approximately Rs 22.38 billion to 14,064 depositors.

Speaking at the event, Chief Minister Baniya reaffirmed the provincial government’s commitment to delivering justice to cooperative victims and warned that those responsible for misusing depositors’ savings would face strict legal action. He also stressed the importance of restoring public confidence in the cooperative sector by supporting well-managed institutions while maintaining firm oversight of those involved in financial irregularities.

Minister for Cooperatives and Poverty Alleviation Binu Rayamajhi announced that an online complaint registration system will be introduced from July 17 (Shrawan 1) to simplify the process of returning deposits and improve access to relief for affected savers.