Nepal Cooperative Sector Overview

Details

The cooperative sector is a vital pillar of Nepal's financial landscape, especially in rural and semi-urban areas lacking formal bank presence.

Key Facts

Density: Nepal has over 31,373 registered cooperatives (as of recent government surveys), making it one of the most cooperative-dense countries in Asia relative to population.
Dominant Segment: Savings and Credit Cooperatives (SACCOs) and multipurpose cooperatives dominate the sector, mobilizing local savings and providing credit.
Regulatory Authority: Regulated by the Department of Cooperatives under the Ministry of Land Management, Cooperatives and Poverty Alleviation.
NRB Oversight: Nepal Rastra Bank (NRB) only regulates specific large cooperatives or those with banking transactions exceeding a designated threshold.
Challenges: The sector faces serious governance, liquidity, and fraud challenges, prompting ongoing regulatory reforms and a freeze on new licenses in urban hubs.
Economic Impact: Cooperatives collectively mobilize billions of rupees, driving local entrepreneurship, agricultural activities, and financial inclusion.

Category

Banking

Fiscal Year

2082

Key Figure/Rate

31,000+ registered cooperatives