President Ramchandra Paudel issued an ordinance on Sunday to amend some Nepal laws on cooperatives.

According to Shailaja Regmi Bhattarai, the spokesperson for the Office of the President, the President issued the ordinance in accordance with Article 114 (1) of the Constitution on the recommendation of the Council of Ministers.

The Cabinet meeting held last Tuesday decided to introduce an ordinance related to cooperatives and recommended it to the President.

The ordinance establishes a National Cooperative Regulatory Authority to regulate savings and credit cooperatives, abolishes the National Cooperative Development Board, and mandates the return of up to Rs500,000 in depositor savings as a priority.

It authorises the sale of collateral to repay loans if borrowers fail to clear debts, ensures transparency in cooperative registration and classification, and regulates individual savings and credit limits.

According to the new provisions, the cooperatives can lease or sell assets to generate funds for deposit repayments. These measures aim to protect depositors while promoting accountability within the cooperative sector.