Savings Services

Fund and Savings Management

The following funds and savings have been arranged under the program. The management committee will be able to make amendments to the funds and savings management.

1  Group Saving (Central Saving) 

In this program, a Central savings arrangement has been made for the rural women members involved, to instill the habit of saving regularly, even if it’s a small amount.

• The savings amount collected from each member of the participating groups during two weekly or monthly center meetings, as well as the savings amount from the training period prior to group entry, will be deposited into the center’s savings.
• The savings amount will be deposited in the branch/sub-branch/unit office operated by the group through the central saving center. This savings account will earn interest at an annual rate of 6 percent. The interest rate may be subject to change from time to time by the organization’s board of directors. The minimum deposit amount will be as determined by the organization.
• From this savings amount, loans can be provided to members according to the loan arrangement provided by the central fund as per paragraph (j). But for this facility, there should be no other loans.
• If a member of the group withdraws, the remaining savings amount will be returned to them after deducting their loan balance, interest, and other responsibilities. However, if any member has a guarantor, the amount saved in the center will not be refunded until that person’s loan is paid off.

2  Central Fund Savings

The center has made arrangements for a fund to make the members self-reliant, work collaboratively with each other, and instill a spirit of cooperation among them.

• From the program, 2% of the general loan amount taken by the members will be deducted for the central fund and the amount will be deposited in the central fund.
• The amount of this fund will be collected and operated from the center through branches/sub-branches. The account of each member’s central fund will be kept separately and clearly visible.
• The central fund will provide interest at an annual rate of 6 percent. This interest rate may be subject to change by the institution’s board of directors.
• The amount accumulated in this fund will only be returned at the time of the member’s withdrawal. When returning the amount of savings and interest deposited in the central fund to the member, only the remaining amount will be refunded after deducting the obligations that need to be collected from them. if a member has a guarantor, the amount saved in the center will not be returned until their loan is fully paid off.
• Members leaving the group/center will also have the amount deducted from their center funds calculated according to the interest. After deducting their loan amount along with interest and liabilities from the incoming amount, only the remaining amount will be returned to them. If any member has a guarantor, the amount from the central fund will not be refunded until their loan is repaid.

3  Personal savings or discretionary savings

• Members participating in the program will be able to keep the amount they have in their personal savings accounts. During the two weekly or monthly meetings, members will be able to deposit and withdraw money from their personal savings accounts. The minimum amount for transactions in the personal savings account will be Rs. 500 (five hundred). If the amount is less than this, it will not be refundable, and any amount can be deposited during transactions.
• Members of the group/center can conduct personal savings transactions at the office on days other than the day of the central meeting, by going to the branch/sub-branch/unit office.
• The personal savings amount will be deposited at the branch/sub-branch/unit office. In this savings account, an annual interest of 6 percent will be provided by the branch/sub-branch/unit office. The interest rate on such savings may be subject to modification by the organization’s board of directors. However, if a member has provided a guarantee, the amount of personal savings will not be refunded until that person’s loan has been paid off.

4  Benevolence fund

• The fines, penalties, donations, and other collective amounts collected from the central meeting will be deposited into the Welfare Fund. The management of this fund will be conducted by the central office. Additionally, it is mandatory to deposit NPR 50 per meeting.
• The amount of the assistance fund will be deposited at the branch/sub-branch/unit office. The branch/sub-branch/unit office will provide an annual interest rate of 6 (six) percent on this fund. The interest rate provided by this fund may be subject to change by the organization’s executive committee.

5  Other savings/funds

Other savings and funds can be operated as per the necessity of the center.

6  Pension savings

The organization is committed to providing its members with proper education for their children, housing, and management of health and food resources in old age. Accordingly, the organization has prepared a pension savings plan, keeping in mind the support of loans for becoming self-employed at a young age and ensuring that savings can sustain them in their elder years. The member will deposit pension savings while being in the group, and an interest of 7 percent will be given on that amount. When a member is withdrawn from the center/group, the total amount including the principal and interest must be deposited into the pension savings account. In this way, the amount deposited in the pension savings will earn a monthly interest at the rate of 9 percent in the form of a pension.

 

7  Share savings    

• According to the value recognition and principles of cooperatives, one can only become a shareholder member of the institution and engage in transactions by being affiliated with the center/group.
• The objective of this program is to target individuals with low income and encourage them to join groups. Therefore, individuals who wish to join the center can enroll in the group by taking at least 1 share during the member orientation training. They will need to continue increasing their share amount later. Alternatively, for extremely impoverished families, the share amount will be saved in installments, and every 3 months—during the months of Ashwin, Poush, Chaitra, and Ashadh—the accumulated savings from the shares will be transferred to shares or, at the time of taking a loan, an amount of 2.5 percent will be deducted and deposited into the share account.
• The amount of shares collected in this way will be deposited into the individual accounts of the members according to the bonus rate determined by the general assembly from the profit earned at the end of Ashadh, from the share bonus fund received according to the regulations.
• While being a member and conducting transactions in this way, members will be able to choose and send their representative from the center to the institution’s general assembly. The decisions made by that representative will be considered valid.

8  Child Savings Scheme (Samriddhi Sukanya Bachat Yojana)

The Child Savings Scheme has been implemented to make up to 2 children of the members self-reliant, to encourage them to work together, to instill a spirit of cooperation among them, and to support the members’ children in pursuing employment or higher education after the age of 18.

Method of depositing

• To participate in this savings scheme, a minimum monthly contribution of Rs. 500 must be deposited starting from the month the child is born, for each meeting. The amount received for maternity member care (showing the child’s face) by the organization will be initiated through the account.
• If a member does not take the installment due to the central meeting being canceled or for any other reason, they will have to deposit double the savings installment in the next meeting.
• The duration of this plan will be 18 years. If a member wishes to withdraw from the group in between, the entire amount will be refunded along with 7 percent interest.
• If a participating member passes away in this plan, the amount returned, along with the interest for that period, will be given to the member’s successor. Alternatively, it can be transferred and operated in their name.
• After participating in this plan, adjustments to the amount can be made in between. According to the regulations of the Government of Nepal, tax will be levied on the interest received by the members. If a member wishes to close the account in between, they can do so by paying Rs. 200 as account closure fee.
• The member can include up to two children in this plan.
  Note: A withdrawal fee of Rs. 200.00 will be charged when a member withdraws.