The Ministry of Corporate Affairs has mandated complete digitalization of annual filings for all registered Nidhi companies, eliminating physical submission requirements. This reform modernizes compliance procedures for these mutual benefit societies, requiring them to submit financial statements, auditor reports, and compliance certificates exclusively through the MCA21 portal. The move aims to reduce processing delays and improve regulatory oversight through standardized digital records.  

Smaller Nidhi firms have been granted a three-month grace period to adapt to the new system, with the MCA conducting regional workshops on the updated e-filing process. The portal now features pre-filled forms for recurring disclosures and automated validations to minimize submission errors. Early adopters report significant time savings, though some rural-based companies face challenges with document digitization and internet connectivity issues.  

This digital push coincides with stricter verification protocols, as regulators integrate the filing system with income tax and bank databases for cross-checking financial data. While applauding the efficiency gains, industry groups have requested continued technical support for smaller operators. The complete shift to online filings represents a crucial step in the government’s broader agenda to digitize financial regulation and enhance transparency in the Nidhi sector.