National Co-operative Development Board

NCDB has the highest authority to develop plans, policies relating to the co-operative organization. It was established in 2047 B.S. by Nepal Government. NCDB was established with an objective of promoting socio-economic co-operation among the poor and backward communities of the country through a co-operative organization. This organization is responsible for the development of policy, plan, rules, and regulation relating to the co-operative organization. It provides different facilities for promotion and development of co-operative in all corner of the country.

Formation of NCDB

The agriculture minister of Nepal will become chairman of NCDB. The head of NRB will be associated chairman of NCDB. The members from other ministries and bodies of Nepal government will be nominated as its member. The representative of National Planning commission, Registrar of a co-operative department, secretaries of various department of ministries and other people nominated by Nepal government will be the member of a board.

The meeting of co-operative development board will discuss the different matter of co-operatives and development plan and policies for it. The meeting of the board can't be started without the presence of at least 50% of its member. This board can develop different committee and subcommittee to work in various aspects of a co-operative organization.

(National cooperative development board: formations and functions)

Function of NCDB

1. Formation of pan and policies
2. Support the Nepal Government
3. Conduct necessary research and study
4. Provide credit facility
5. Investment in the co-operative organization
6. Provide Guarantee for Securities
7. Provide Technical Assistance

Formation of plans and policies:

It is the main function of (NCDB). NCDB formulates the plans and policies relating to the development of the cooperative organization in the country and suggest government for implementation. It modifies existing policies according to the change of time and formulates new policies as well.

Supports Nepal Government:

NCDB supports Nepal Government by providing news regarding updated plan and policies for the systematic development of co-operative in a country. It provides support activity to the government for implementation of plans and policies. It helps the government in research and study activities of co-operative.

Conduct necessary research and study:

NCDB makes research study to find out problems and prospect of co-operative in the specific area. It makes the study of the trend of change in co-operatives. It works to find out a new and improved technique of managing co-operatives.

Provide credit facility:

NCDB creates a special kind of fund which is called co-operative development fund. This fund is utilized to provide the loan at subsidiaries rate of interest to the co-operative organization. It makes investigation and study of the problem of specific co-operative and provides loan facilities to come out of it.

Investment in the co-operative organization:

NCDB also makes an investment in a specific cooperative organization, if it feels necessary to invest. Generally, NCDB invests into co-operative to take its management. It purchases share and assets of co-operative. It also acts as a regulatory of a co-operative organization.

Provide a guarantee for securities:

Bank and finance institution may not provide a loan to co-operative against their assets in the rural or remote area. In such a situation, NCDB works as a guarantor of assets of co-operatives.

Provide technical assistance:

NCDB conduct different workshop training seminar to provide new and updated information about the technology used in co-operatives. It may also provide a technical person for a certain period of time to co-operatives.

National Co-operative Development Board (NCDB) was formed in August 1991. It is an autonomous corporate body established to formulate the national level plans and policies for the development of co-operatives in the country according to the co-operative principles. The Board is managed by an executive committee of 25 members.

Function According to National Co-operative Development Board

According to the National Development Board Act, 2049, the functions of the National Development Board are as follow:

• To formulate Nepal Government plans and policies concerning cooperative development
• To facilitate the implementation of cooperative policies
• To maintain a cooperative development fund with a view to provide loans or grants for development purpose of cooperative
• To participate in the share capital of cooperative societies, unions or banks
• To stand as surety for cooperatives
• To extend technical assistance to cooperatives
• To bring coordination between cooperatives and other related government as well as non-governmental agencies/organizations
• To encourage cooperatives to expand their business services
• To facilitate joint investment of the Government, cooperative and other national as well as international organizations for the industrial development in the cooperative sector;
• To conduct the required studies and research work for cooperative development; and
• To carry out all other functions as may be deemed necessary for promoting the cooperative movement.

(National Co-operative Development Board)

Features of NCDB

• It is established under the NationalCo-operative Development Board Act 2049.
• It is an autonomous corporate body with perpetual succession.
• It has a separate legal status and a common seal for its operation.
• It can sue anybody and also can be sued by anybody.
• It can purchase and sell the assets in its own name.
• It is managed by an executive committee under the chairmanship of the Minister of Agriculture and Co-operatives.

References:

Khanal, Soma Raj, Surendra Thapa Aslami and Sitaram Dhakal. Business Studies. Kathmandu: Taleju Prakashan, 2067.

National Co-operative Development Board. 7 July 2016 <http://www.ncdb.org.np/about-ncdb/functions-duties/>.

National cooperative development board : formations and functions. 7 July 2016 <http://notes.tyrocity.com/national-cooperative-development-board-formations-and-functions/>.