Cooperatives Act, 2017

103H. Functions, Duties, and Powers of Authority: (1) The functions, duties, and powers of the Authority shall be as follows:-
(a) To formulate and implement national standards on matters including registration, regulation, monitoring, supervision, and reporting system of cooperatives primarily dealing in savings and credit,
(b) To issue prudential standards relating to the operation of cooperatives primarily dealing in savings and credit,
(c) To regulate, monitor, and supervise cooperatives primarily dealing in savings and credit,
(d) The Authority may have certain powers vested in it implemented through the Registrar, Provincial Registrar, and the officer looking after cooperatives at the local level,
(e) To carry out necessary works to ensure the security of depositors' savings, to conduct regular inspections of cooperatives primarily dealing in savings and credit, to receive complaints, to investigate complaints received, and to give directives to the concerned institution,
(f) To prepare a roster in coordination with the Institute of Chartered Accountants of Nepal for regulation and supervision and to conduct or cause to conduct prudential audits of cooperatives primarily dealing in savings and credit,
(g) To implement or cause to implement the management information reporting system of cooperatives at the Federation, Province, and Local Level,
(h) To designate inspection officers as necessary to inspect cooperatives primarily dealing in savings and credit,
(i) To regulate, monitor, and supervise cooperatives primarily dealing in savings and credit at the Province and Local Level jointly in coordination with the Province and Local Level,
(j) To perform other functions as prescribed relating to regulation.

(2) While conducting proceedings and deciding on complaints including embezzlement of savings amounts received by the Authority, the Authority shall have the power to perform the following acts in the same manner as a District Court under the prevailing law:-
(a) To summon any person before the Authority and take statements or obtain information,
(b) To examine witnesses,
(c) To order the production of any deed or document in any body of the Government of Nepal, Provincial Government, or Local Level or public institution,
(d) To conduct or cause to conduct spot inspections and order the production of evidence.

(3) The Authority may impose a fine ranging from five hundred thousand rupees to one million five hundred thousand rupees on a cooperative primarily dealing in savings and credit that fails or causes to fail to comply with any matter under this Act or rules made under this Act, and may send a letter to the concerned body to cancel the registration of such cooperative.

(4) If a director, office-bearer, manager, or employee of a cooperative primarily dealing in savings and credit violates this Act or rules made under this Act, the Authority may impose a fine ranging from one hundred thousand rupees to five hundred thousand rupees on such director, office-bearer, manager, or employee, and may send a letter for action pursuant to the prevailing law against such director, office-bearer, manager, or employee.

(5) A person dissatisfied with a decision made by the Authority pursuant to Sub-section (3) or (4) may appeal to the concerned High Court within thirty-five days from the date of such decision.

(6) While performing functions relating to the regulation of cooperatives primarily dealing in savings and credit under this Act, the Authority shall also comply with the directives and standards issued by Nepal Rastra Bank pursuant to Section 23A.

(7) The Authority may prescribe necessary conditions regarding third-party guarantees.

(8) Notwithstanding anything written elsewhere in this Act, there shall be no hindrance for the Authority to regulate, monitor, and supervise cooperatives primarily dealing in savings and credit, and while doing so, it shall be done in coordination with the concerned level.