About Us

VYCCU is a sole-purpose, (working in the field of saving and credit) co-operative institute in its infancy. Following the international credit union principles, it has been collecting savings from its shareholders, offering a certain amount of interest on the savings and lending money to its shareholders at reasonable interest rate.

This institute was established on the 5th of Bhadra in 2048 B.S. under the initiative of VDRC (then Vijaya Youth Club) with the active participation of 26 shareholders. Due to the confusion in lending it institutional legitimacy through registration, it was named ‘Vijaya Youth Club’. This, in short, is known as VYCCU. At present, it is running after having been registered under Co-operative Act 2048 and Co-operative Regulation 2049 at the co-operative institute in Nawalparasi in the year 2050.

Established with the ideal motto of ‘Saving is the seed of development’, this programme was initiated with 50 paisa daily saving per head. The aim of the institute is to emancipate the society from the prevalent poverty, illiteracy and indulgence and to develop the god habit of saving and thus mobilize the same saving among the shareholders to encourage small-scale entrepreneurship.

Within a short span of time, VYCCU was able to increase its membership, share sale and to expand its business and was able to offer dividend to its shareholders. After it received the license to conduct limited banking transaction in 2054 B.S. from Neapl Rastra Bank, it succeeded in providing more service to its shareholders by collecting more deposit.

At present, VYCCU runs in a democratic manner by following the Co-operative Act and Regulations, directives given by Nepal Rastra Bank and the by-law along with various other rules adopted by the institute.

Vision

Establishment of pioneer financial institute based on social justice, public credibility and imitable self-reliant community.

Mission

Setting up of an institute based on co-operative principle and financial capability.

Mobilization of local resources will administrate institute devoid of all social discrimination. Emphasis on social unity and development of human as will as material prerequisites.

Objectives

• Increasing share capital
• Increasing membership
• Diversify investment\
• Saving, lending and other services at affordable rate
• Optimum utilization of local resource and skills
• Developing entrepreneurship of the shareholders
• Effective credit repayment
• Development of material prerequisites as well as human resources
• Good administration and transparency
• Communication, coordination and development
• Develop the habit of saving by discouraging extravagance and social evils
• Adopt the policy of financial economy
• Create self-employment opportunities through awareness
• Emphasis on unity
• Co-operation
• Means of social security.

History

VYCCU Savings and Credit Union (referred as VYCCU) was promoted in the year 1991 by Vijay Youth Club to initiate savings habit among the community. The club later renamed as Vijay Development and Research Centre (VDRC) started collecting 50 paisa per day form its members as a recurring savings. The amount collected was deposited in commercial banks and the interest earned was distributed to the depositors at the end of every six month.

In 1993 after the enactment of Co-Operatives Act, 2048 (1992), VYCCU got registered as a primary level savings and credit cooperative (SACO) with its registered office at Gaindakot, Nawalparasi district. In the years 1997, VYCCU registered itself with the Microfinance Department of Nepal Rashtra Bank (NRB) and received the license for limited banking programme where they were permitted to mobilise savings from non-share holders. Even though the permission to mobilise savings from non-share holders was repealed later by NRB, the licence brought the institution under the scan of the NRB which created acceptance in the community. With this licence, VYCCU is eligible to raise fixed deposits from its members, provident fund deposits from its institutional members and also eligible to issue chequebooks. VYCCU is monitored by Registrar of Cooperatives and by NRB.

Membership is open to all permanent residents in the operational area and not limited solely to the poorer section however VYCCU gives priority to the low and medium income house-hold and encourage them to be part of the programme. The organisation aims to promote savings as a habit and to provide credit for income generation, thus improve the socio-economic condition of the member. To ensure the participation of women and other disadvantaged sections the share requirement is kept as minimum of one units of share of NRs 100 each. Members are encouraged to have more than one unit of share. Currently there are 5,602 shareholders with a total share capital of 17,094,900.

The institution is managed by an independent body named Executive Committee of eleven members elected from the General Assembly for tenure of three years. The operational head (Manager) responsible for the day to day administration reports to the Executive Committee. General assembly also elects sub-committees for supervision of accounts and loan.

VYCCU had its Head office at Gaindakot and a service centres at each target VDC. As on June, 2010 VYCCU is operating in five VDCs, namely, Gaindakot, Mukundapur, Amarapuri, Rajahar and Kavasothi.

Human Resource Management

VYCCU has a relatively small staff team consisting of 14 fulltime staff, supported by a team of volunteers. Manager is the chief functionary of the institution and directly responsible for the day to day administration and reports to the Executive Committee.

VYCCU has an experienced Manager and a team of committed field staff. Majority of the head office staffs are experienced and had long association with the institution. Staffs are informed about the policies and products and have the basic skills needed to carry out the recording and reporting functions. Support functions like internal audit, client education, loan sanctioning etc. are done by a team of members who are working on voluntary basis. With the limited operations the current staff strength is adequate but on larger scale of operations VYCCU has to graduate to more formal organisational structure.

New recruits are inducted through a formal classroom training followed by on the job training where they will shadows an experienced staff. The parent organisation VDRC has a training institute and a bouquet of experienced trainers. Volunteers play an important role in the functioning of VYCCU. Members training and internal audit functions are done by a committee of elected volunteers by the General assembly.

Management Information Systems

Management information System (MIS) in VYCCU is a basic accounting package developed by “Techminds” capable of recording its financial transactions, ledger maintenance and preparation of financial statements. Head office and service centre modules are stand alone. Every day a back-up from each service centres are uploaded to the head office module as an end of day routine to update the information. Vouchers, slips/cheques and receipts are used to record the primary transaction and are maintained properly. Staff are trained in using the software for encoding transaction and generate reports when needed. Data encoding at service centres are done by senior savings officer and at HO is done by the tellers. VYCCU is not having any dedicated staff for managing the software but had contracted with the software and hardware vendors for onsite supports in case of functional failure.

Internal Audit and Control

The role of internal audit is performed by the Accounts and Supervisory Committee comprised of three elected volunteer members from the general assembly for tenure of three years. The committee is separate from the Executive Committee and reports to the General Assembly once in a year during the Annual General assembly.

VYCCU does not have an internal audit department or dedicated staff. The committee meets once every month and conducts scrutiny of vouchers and account books. The scope of audit of the committee is also very limited and the frequency of audit is low. The committee verifies the accounting records at head office but does not visit clients or service centres. Though, the strength of this system is the fact that it is a committee independent of the management, it needs to be strengthened by including some regular staff members who can give more time to the job and also by enhancing the scope of auditing

The accounts are audited by a statutory auditor twice every year but put his seal on the annual audited statement.