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Background:
Co-operative is a movement, a movement of participatory progress upon economic empowerment, and every year on July 6th, the world community commemorates this day. This day is the marking of the first Saturday of July since 1923.
Since 1923, the International Cooperative Organization has been celebrating Cooperative Day in July every year. The United Nations has also adopted the day since 1995. In Nepal too, in the last two decades, there has been a growing trend of taking loans in installments, forming groups at the community level, and doing business, including cooperative or microfinance and credit flow without any collaterals. From small businessmen to big corporations, they are involved in saving a certain amount of money and borrowing a large amount of money by paying small installments regularly. Cooperative refers to financial services or assistance provided to individuals or community groups who are financially marginalized, low-income, and do not have access or have less access to other financial services.
At present, cooperative fraud has emerged as a serious economic crime in Nepal, directly affecting thousands of ordinary citizens. Trusting cooperative institutions, many people invested their lifelong savings, only to be deceived by some operators who exploited regulatory loopholes, abused power, and operated under political protection. As a result, victims have suffered severe financial losses, with some facing mental stress, family breakdowns, and difficulties in managing daily life. It is imperative that the government and regulatory bodies take strict action against those involved in such fraud and ensure proper compensation for the victims. Otherwise, there is a serious risk of eroding public trust in the entire cooperative system.
The purpose of co-operative is insurance for savings, borrowing, and risk reduction. Compared to other financial transactions, cooperative loans can be relatively expensive as loans have to be disbursed at the community level and mostly without collaterals. Despite this, many small farmers or small traders are a part of co-operatives as the service is simple, easy, and provided in the community.
Definition of Co-operative as per Co-operative Act
According to the preamble of Nepal's Cooperative Act 2048, 'the country's farmers, Kaligad, low capital and low income class, laborers, landless and unemployed or social workers can form various types of cooperative organizations and associations on the basis of mutual support and cooperation for their economic and social development. And since it is desirable to make arrangements related to operation, the law has been made.Based on the above meaning and definition, a cooperative is a united effort for economic and social upliftment through mutual support and democratic control by people with similar desires, aspirations and conditions.
Initial co-operative days in Nepal
The initial credit for cooperatives or so-called microfinance in Nepal goes to the Rural Development Bank of Eastern Nepal (Gramin Bikash Bank), which has been delivering cooperative facilities in Eastern Nepal since the mid-1990s. This bank first created a women's group, made them literate, and empowered them enough to aspire for a loan with a specific purpose of doing a certain business.
2025 ThemeThis year on July 5, International cooperative Day "Cooperatives: Driving Inclusive and Sustainable Solutions for a Better World"This theme highlights the key role that cooperatives play in creating a more fair, green, and thriving world for everyone.
Upcomming Events
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29MangsirSafala Ekadashi Vrata 2 days remaning
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1PaushDhanu Sankranti 3 days remaning
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2PaushPradosh Vrata 4 days remaning
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5PaushTol Lhosar 7 days remaning
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6PaushWorld Meditation Day 8 days remaning
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10PaushChristmas 12 days remaning
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13PaushGorakhkali Puja 15 days remaning
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17PaushNew Year 2026/Pradosh Vrata/Topi Day/Poshak Day 19 days remaning
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23PaushAraniko Smriti Day 25 days remaning
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27PaushPrithivi Jayanti/Rashtriya Ekata Diwas/Gorakhkali Puja 29 days remaning
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