Kanchanpur cooperatives embrace frugality and financial discipline

Kanchanpur: The trend of lavish decorations, hospitality, gift distribution, and banquets in cooperatives engaged in savings and credit operations is gradually declining in Kanchanpur. Many cooperatives are now conducting their general meetings in a more frugal and member-focused manner.

Cooperatives have also ended the practice of appointing ministers, MPs, or external guests with no direct connection to the organization as chief guests, which previously led to significant expenses on transportation allowances and hospitality.

Ganesh Bhatta, Manager of Mahalaxmi Savings and Loan Cooperative Society Limited in Jhalari, Shuklaphanta Municipality-10, stated that this year’s general meeting was held without grand decorations or banquets. “We inaugurated the meeting traditionally by lighting a lamp,” he said. “We invited only three guests related to the cooperative and completed the program in half an hour. The meeting focused on members’ concerns, including savings, loans, institutional policies, and future strategies.”

Bhatta added that this approach followed directives recently issued by the National Cooperative Regulatory Authority regarding general meetings. Similarly, the Creative Savings and Loan Cooperative has decided to conduct its general meeting in the same manner. Madan Bhatta, Managing Director of the cooperative, said an action plan has been prepared in accordance with the authority’s directives.

Under the Cooperative Act, 2074, the authority has directed cooperative organizations to end non-member-centric and extravagant general meetings. The directive instructs cooperatives to invite non-members directly to the meeting without spending time on formal programs such as opening ceremonies, seating arrangements, or guest remarks.

Madhav Prasad Joshi, Director of the National Cooperative Federation, said that such frugal practices will strengthen cooperative governance. “Instead of spending on banquets, gifts, and hospitality, the focus has shifted to investing in members’ welfare,” he said, calling it a positive step toward improving cooperatives.

According to him, Section 39 (2) of the Cooperative Act, 2074, outlines general meeting procedures, while Section 103 (h)(1) empowers the authority to regulate and issue directives. Based on this legal framework, cooperatives have been guided to adopt the new practice.

“Previously, celebrating general meetings extravagantly increased the financial burden on many cooperatives,” Joshi added. “Member-centered, frugal, and effective meetings are expected to enhance transparency and accountability.”

Dharmaraj Joshi, Mahendranagar Field Office Chief of NEFSCUN (National Federation of Savings and Credit Cooperatives Union of Nepal), described the authority’s directive as a positive development. “General assemblies are meant for members to exercise their rights; inviting non-members goes against this principle,” he said. “This practice will strengthen governance and financial discipline within cooperatives.”

Jogi Singh Sob, President of Kanchan Savings and Credit Cooperative Organization, said the directive has returned the general assembly to its intended purpose. “It has encouraged listening to members, discussing policies, and focusing on institutional strengthening,” he said. “Frugal but effective assemblies will reestablish cooperatives as financially responsible and ethical institutions.”