The Ministry of Corporate Affairs has proposed a set of major amendments to the Societies Registration Act, 1860, aiming to modernize the framework governing non-profit societies across India. The proposed changes focus on increasing transparency, ensuring financial accountability, and improving regulatory oversight.

Key among the amendments is the introduction of mandatory digital registration for all societies, with a centralized online database to track compliance, annual returns, and financial disclosures. This move is expected to streamline administrative processes and curb fraudulent or inactive societies.

The draft bill also proposes stricter audit norms, compulsory annual general meetings, and clear guidelines for the dissolution and merger of societies. Office-bearers of registered societies will now be required to file declarations of assets and liabilities annually to curb misuse of funds.

Additionally, societies involved in foreign funding will have to adhere to enhanced scrutiny under the Foreign Contribution Regulation Act (FCRA) to ensure compliance with national interest and security norms.

Speaking on the development, a senior official from the Ministry stated, “The current law is over 160 years old and lacks the structural depth to govern today’s complex social sector landscape. These amendments are essential to bring uniformity, digital traceability, and legal clarity.”

Stakeholders, including non-governmental organizations and legal experts, have welcomed the move but called for broader consultations to avoid overregulation. Many have emphasized the need for safeguards to ensure genuine community-based organizations are not burdened with excessive compliance.

The proposed bill is expected to be tabled in the upcoming Monsoon Session of Parliament. If passed, this will mark the most significant reform in the governance of societies since the Act’s inception.