Small depositors of two problematic cooperatives begin receiving refunds

KATHMANDU: The Office of the Problematic Cooperative Management Committee (OPCMC) has begun refunding savings to small depositors of Kantipur Saving and Credit Co-Operative and Pashupati Saving and Co-Operative.

The committee said savings have been returned to 334 depositors of Kantipur Saving and seven depositors of Pashupati Saving. Refunds were made using funds recovered from loans originally disbursed by the problematic cooperatives, the committee added.

Since July 17, the committee reported that loans have been recovered from 65 borrowers linked to various problematic cooperatives. In the first phase, refunds have been provided to depositors with smaller savings, with remaining deposits to be returned gradually after categorising savers by deposit size.

The committee said the process of returning savings will continue in line with prevailing legal provisions, using funds generated from loan recovery and the management of assets belonging to the problematic cooperatives.

(With inputs from RSS)