The Office of the Cooperative Registrar has issued a detailed set of instructions to cooperative federations and associations, citing the need to implement provisions of the Cooperative Act, 2074 more effectively. The directive focuses on cooperatives engaged in savings and credit activities and seeks to improve transparency, institutional governance and the security of members’ deposits.

The instructions call for stricter control over savings collection and loan investment, regular auditing, stronger internal control systems and full disclosure of financial details to members. Cooperatives have also been told to hold annual general meetings on time, maintain proper accounting and asset records, and ensure that decisions on lending, recovery and financial management comply with legal and regulatory requirements.

The registrar has further instructed umbrella cooperative bodies to monitor affiliated institutions, promote good governance and support corrective action where irregularities are found. Cooperatives are expected to follow approved policies, rules and directives, maintain coordination with the National Cooperative Regulatory Authority where applicable, and submit required information and reports to concerned regulatory agencies.

The government has also emphasized adherence to cooperative values and principles, member-focused management, professional training, financial education and responsible market practices. The move is intended to reduce risk in the cooperative sector, strengthen accountability and protect depositors and members from mismanagement.