Nepal Rastra Bank has fixed a minimum paid-up capital threshold of Rs 2.5 billion for cooperative banks under the Cooperative Bank Directive, 2025. The directive requires banks to maintain primary capital of at least 4 percent and total capital of 8 percent based on risk-weighted assets. A four-level penalty framework has been introduced, with provisions for license cancellation if capital shortages exceed 75 percent. NRB has also unveiled a separate integrated directive for the National Cooperative Bank, covering governance, risk management, reporting, and other key areas, establishing the first comprehensive regulatory framework for cooperative banks.
