Banking News – Nepal’s Problematic Cooperative Management Committee has begun refunding deposits to small savers of Kantipur Saving Cooperative and Pashupati Cooperative, using funds recovered from loan collections of troubled cooperatives.

According to the committee, 334 depositors of Kantipur Saving Cooperative and seven depositors of Pashupati Cooperative have received their savings. The government clarified that the refunds were made from money recovered through the collection of outstanding loans from problematic cooperative institutions.

The committee also reported that it recovered outstanding dues from 65 borrowers of various troubled cooperatives between Shrawan 1 and Shrawan 15.

According to the committee, the first phase of the refund process has prioritized depositors with smaller savings balances. Refunds to other depositors will be made gradually based on the classification of deposit amounts.

The committee stated that the process of returning savings to depositors of problematic cooperatives will continue in accordance with prevailing laws, using funds generated through loan recovery and asset management of the affected cooperative institutions.