Section 54: Functions of Cooperative Bank

The Cooperative Bank shall, subject to this Act, the Rules Byelaws and other prevailing laws in force, carry out the following functions amongst the members of the Organization or Association in order:-

(a) To disburse credits to organisation or with association on the prescribed ratio as fixed and current capital for the purpose of agriculture, industries, services, trade, energy, tourism as well,

(b) To accept savings from members and to repay such savings,

(c) To enter into agreements with Association or the agencies of Organization or Government of Nepal or Provincial government agencies or local level being concentrated to members for development of development and promotion of cooperatives and to make joint financing,

(d) To issue a letter of guarantee on behalf of member Organization or Association, to accept mortgage or movable or immovable assets in lieu of such guarantee or accept assets guarantee with consent of a third party,

(e) To borrow institutional credits as may be necessary,

(f) To recover interests on credits, bonds and so on,

(g) To carry out inspection, supervision, and monitoring with regard to whether or not the credits disbursed are utilised,

(h) To purchase or sell bonds issued by the Government of Nepal or Treasury Bills issued by the Nepal Rastra Bank,

(i) To exchange information among Organisations or Associations or members associated with them,

(j) To accept deposits, make payments and transfer amounts through electronic instruments or devices,

(k) To borrow or reborrow credits time and again as may be necessary,

(l) To invest or use the amount received from internationally recognised Organisations related to cooperatives, donor agencies, and banks as development, finance and credits for the promotion of projects and to manage such resources,

(m) To carry out or cause to carry out studies, research, and surveys relating to project establishment, operation and appraisal,

(n) To carry out other banking transactions after obtaining a license from the Nepal Rastra Bank.