Guv for moratorium on co-op registration

Finding it hard to regulate such cooperatives present in large numbers, the Department of Cooperatives has also been encouraging the institutions to merge.
The central bank has also been imposing a moratorium on the registration of new bank and financial institutions registration for the last few years.
Khatiwada said the merger campaign would not yield positive results until new registrations continue.
“Going for mergers without a moratorium on registration would be of no value, akin to digging holes and filling them back up again,” said Governor Khatiwada, speaking here at the second Savings and Credit Cooperative Summit organised by Nepal Federation of Savings and Credit Cooperative Unions on Saturday.
Khatiwada said the cooperatives have failed to reach out to a large number of the people despite their high numbers. “Effective service with limited number of institutions is the need of the hour,” he said.
Given the cooperatives account for 15 percent of the deposits in the financial sector, any problem created in cooperatives affects the economy, according to the governor.
“ NRB is concerned about whatever is happening in the cooperatives sector although it is not the sector’s regulator,” he said, stressing on the need for a strong regulatory body.