Nepal government has procedures to establish a revolving fund aimed at returning deposits of savers affected by troubled cooperative institutions, local media reports.
Published in the Nepal Gazette, the framework follows a cabinet agenda ensuring repayment, especially for small depositors with savings below Rs 500,000. An initial Rs 250 million has been allocated, with additional funding from recovered assets and misused funds.
The Problematic Cooperative Management Committee will manage distribution, verify claims, and prioritize vulnerable groups. Repayments will be made via banks, while authorities pursue asset recovery and enforce strict monitoring.