Section 12: Formation of Cooperative Bank

1) Organizations and Associations together may, with prior approval of the Nepal Rastra Bank, form a Cooperative Bank with the objectives of accepting savings of the Organisation or Association, disbursing credits or providing banking services to such Organization or Association.

2) Notwithstanding anything contained in sub-Section (1), the national cooperative bank that is in operation at the commencement of this Act shall be deemed to have been formed under this Act.

3) Other provisions concerning the formation of a Cooperative Bank shall be as prescribed.