FNJ collects suggestions on cooperative reference interest rate

The National Federation of Cooperatives has taken suggestions on the reference interest rate from the cooperative workers, available operators of the federation, central unions and district cooperative unions in the valley. Members of the Interest Rate Determination Committee and the coordinator and members of the sub-committee formed to determine the interest rate were present in the program organized under the chairmanship of FNCCI President Minraj Kandel today.

Article 51 of the Cooperatives Act 2074 has empowered the Registrar to fix the reference interest rate on the basis of the recommendation of the Interest Rate Determination Committee. The federation has decided to send Om Devi Malla, senior vice president of the federation and global board member of the International Federation of Cooperatives and Khem Pathak, president of the Nepal Agricultural Cooperatives Central Association and Paritosh Poudyal, president of the Nepal Savings and Credit Central Cooperative Union (NEFSCUN) to the committee. Similarly, CEO Badri Guragai has represented the cooperative bank.

Om Devi Malla, senior vice president of the federation, is the coordinator of the task force formed by the assessment committee to study and recommend the interest rate. The five-member task force includes Kedar Pokhrel of Nepal Rastra Bank, Surendra Raj Poudel of the Department of Cooperatives, Paritosh Poudyal, Chairman of Nepal Savings and Loan Central Cooperative Union and Badri Guragai, Chief Executive Officer of Rastriya Sahakari Bank. The sub-committee will study the interest rates of financial markets and cooperatives and prepare a report. During the discussion, Malla said that the interest rate report would be made available to the committee only after studying the provisions of the Act and the financial condition of the market. FNCCI President Kandel said that they will move forward by forming a common vision of the campaign.

Last year, for the first time, a maximum reference rate of 16 percent was fixed for loans in cooperatives. It was implemented from 19 July 2076. There is a provision in the Act that the reference interest rate specified in this way is not the direct interest rate for cooperatives.