Submit your Article

The Nepal Stock Exchange (NEPSE) gained 1. 83 points to close at 2, 595. 96 points on Wednesday.

Similarly, the sensitive index surged by 2. 41 points to close at 439. 01 points.

A total of 10,745,427-unit shares of 299 companies were traded for Rs 5. 82 billion.

Meanwhile, Dolti Power Company Limited (DOLTI) was the top gainer today, with its price surging by 10. 00 percent. Likewise, Nyadi Hydropower Limited (NYADI) was the top loser as its price fell by 10.00 percent.

At the end of the day, total market capitalization stood at Rs 4. 30 trillion.

The price of gold has increased by Rs 400 per tola in the domestic market on Wednesday. 

According to the Federation of Nepal Gold and Silver Dealers' Association, the gold is being traded at Rs 155,400 per tola. 

Similarly, the price of silver has increased by Rs 10 and is being traded at Rs 1,830 per tola today.

Nepal Rastra Bank (NRB) has proposed stringent standards and guidelines to tighten savings and credit cooperatives. The proposed standards aim to enforce stricter rules on savings, loans, board formation, and institutional governance of cooperative institutions. The central bank prepared the guidelines after recent amendments to the NRB Act, Cooperative Act and related laws granted it the authority to oversee the financial activities of savings and credit cooperatives.

As per the draft standards and guidelines, which have been made public to collect feedback of stakeholders, cooperatives will be permitted to collect savings up to 15 times their primary capital sourced from members. Likewise, loans that cooperatives can avail from banks and financial institutions have been capped at five percent of total assets or 100 percent of primary capital, whichever is lower.

The savings limits prescribed in the Cooperative Act have been incorporated in the guidelines and standards prepared by the NRB. Cooperatives operating within a single district can accept individual savings of up to Rs 1m, while those operating across multiple districts in a province are limited to Rs 2.5m. For cooperatives with working areas in more than two provinces, the maximum savings per individual has been proposed at Rs 5m. Likewise, cooperative institutions will not be allowed to collect fixed deposits.

Board members in cooperatives will be prohibited from taking loans other than those secured by their personal savings. The draft also caps the size of cooperative boards at seven members, with a provision requiring 33 percent female representation wherever possible. Cooperatives must also maintain a capital fund of a minimum of four percent.

Likewise, the guidelines require cooperatives to classify their loans into four categories—good, substandard, doubtful and bad. Loss provisioning for loans has been set at one percent for good loans, 25 percent for substandard loans, 50 percent for doubtful loans and 100 percent for bad loans.

The draft standards and guidelines bar members of a same family from holding positions on a cooperative’s board or supervisory committee at the same time. Likewise, one cannot serve in multiple cooperatives at the same time. Unsecured loans have been capped at Rs 300,000 or five times the savings maintained by the member, whichever is lower.

The NRB has also proposed stricter rules on procurement of fixed assets by cooperatives. Only the cooperatives profitable for three consecutive years, free of accumulated losses and compliant with capital fund requirements will be allowed to purchase land or buildings for office purposes. Such purchases must be made transparently through a competitive process. Cooperatives can spend 25 percent of their primary capital or 50 percent of their reserve fund for such procurements. Such procurement decisions must be approved by at least 51 percent of the general assembly, and the decision must be reported to the regulatory body within 30 days.

A significant portion of financial transactions by Chinese tourists in Nepal is bypassing the national tax system, raising concerns about lost revenue. Restaurants in Thamel and other areas catering to Chinese tourists often accept payments through WeChat Pay, a China-based digital payment service.  

Although the app uses Nepal’s internet connection, the transactions are processed in China, leaving no record in Nepal’s national accounts. As a result, these transactions are not reflected as foreign income, and the government of Nepal cannot impose taxes on them.  

Moreover, Chinese business operators in Nepal have reportedly used WeChat Pay to repatriate their earnings to China without paying any local taxes. This issue led to a ban on WeChat Pay in Nepal in 2019. However, the ban was lifted in 2020 after the Nepal Rastra Bank (NRB) granted the app permission to operate within the country.  

Despite regulatory approval, the problem persists, with substantial amounts of money being transacted through the app by evading Nepal’s tax system. Experts and officials are now urging stricter monitoring and enforcement to ensure that such digital transactions contribute to the national economy.