KATHMANDU: The Department of Cooperatives is gearing up to monitor and regulate cooperative unions and institutions with the support of the Nepal Rastra Bank (NRB).

With a specific focus on the financial assessments of cooperatives involved in savings, credit, and business operations, the Department has sought collaboration from the central bank.

The NRB has assigned three officials for this collaborative effort.

The responsibility for supervising and regulating cooperative evaluations falls under the leadership of the Department of Cooperative Supervision and Regulation, with the Under-Secretary heading the division.

The Department plans to establish three monitoring groups, each with representatives from NRB.

However, the details of cooperative monitoring and regulation are yet to be finalized.

In recent times, the cooperative sector has faced significant financial irregularities, leading to increased government pressure for improvement and regulation.

Following the amendment of the Money Laundering Prevention Act, the government has mandated NRB to oversee cooperatives with financial transactions exceeding Rs 500 million.