The National Cooperative Regulatory Authority has prohibited cooperative operators and chief executive officers (CEOs) from renting houses owned by themselves or their family members to cooperatives for office operations.

Under the new directive, cooperatives currently operating from properties owned by their operators, CEOs or relatives must relocate their offices within six months. The measure is part of amended regulatory standards for cooperatives primarily engaged in savings and credit transactions.

The authority has also introduced a prior-approval requirement for savings and credit cooperatives seeking to register or change the objectives of institutions whose main business involves savings and credit transactions.

Proposed cooperatives must submit an application to the authority and declare that their members are not members of another cooperative of a similar nature. Their proposed area of operation must also maintain geographical continuity.

The amended standards require applicants to prepare a business plan covering at least five years. They must also commit to maintaining the prescribed qualifications for directors, accounting supervision committee members, managers and employees.

Applications for prior approval must include a recommendation from the concerned local government. The authority will assess the feasibility of the proposed business plan and conduct on-site inspections.

The inspections will cover areas including office infrastructure, security of members’ savings, market conditions and potential investment areas.

The new requirements are intended to strengthen regulatory oversight of savings and credit cooperatives and establish clearer requirements for their registration, operation and governance.