Nepal Federation of Savings and Credit Cooperative Unions (NEFSCUN) in association with Ministry of Agriculture, Land Management and Cooperatives is organising the third Saccos Congress on Thursday.

A total of 620 participants, including a number of experts from abroad, are participating in the two-day seminar which is expected to provide a roadmap for devising risk-based monitoring system to stabilise deposits in the savings and credit cooperatives.

The conclave entitled ‘Inclusive Economic Development: Restructuring of Legal Code for Uniformity in Saccos,’ will discuss on the uniform system in financial cooperatives across the country. It has also targeted to share good practices and technology in these cooperatives along with the implementation of the advanced tools and ideas.

There are 34,512 cooperatives currently in operation in the country, including 14,000 savings and credit cooperatives.

In 2016, they held deposits totalling Rs302.2 billion and disbursed loans worth Rs274.2 billion, according to the government statistics. More than 600 cooperatives are estimated to have an annual turnover of Rs50 million and above.

However, many cooperatives, savings and credit cooperatives in particular, have failed to implement good governance practices and corporate culture in management.

Speaking at a programme on Tuesday, Paritosh Poudyal, coordinator of Saccos Congress, said it would mainly focus on developing an extensive work plan to safeguard the depositors of savings and credit cooperatives. 

NEFSCUN Chairman DB Basnet said they had planned to implement common standards in audit system in financial cooperatives. “The congress will help incorporate the ideas of various stakeholders on the matter,” Basnet said.

The Ministry’s Secretary Gopi Krishna Mainali stressed the need for capacity building of cooperatives at the grass-roots level. According to him, the government has handed over the management of cooperatives in 72 districts to the local government.