Sections 120A and 120B explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The 2023 Amendment Act inserted two new sections after s.120. Section 120A lets the Central Government, from a date it notifies, require filing, service, record-keeping, inspection and payment under the Act to be done in electronic form. Section 120B says the Act applies to a multi-State co-operative society for incorporation, regulation and winding up, and that the Banking Regulation Act, 1949 also applies to one carrying on the business of banking.
This article follows the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023, whose section 44 inserted both sections. The 2023 Act came into force on 3 August 2023 (notification S.O. 3493(E)).
Under s.120A(1) the Central Government "may, from such date as may be notified", require applications, returns, reports and accounts to be filed in electronic form and authenticated, notices and communications to be served electronically, records to be maintained and inspected electronically, and fees to be paid electronically, "in such manner as may be prescribed". Under s.120A(2) the Central Registrar performs listed functions in electronic form. The sources contain no notified date and no portal. Section 120B applies the Banking Regulation Act, 1949 as well to a society carrying on banking.
Section 120A(1): what the Central Government may require
The sub-section begins "Notwithstanding anything to the contrary contained in this Act, and without prejudice to the provisions of the Information Technology Act, 2000". It says the Central Government "may, from such date as may be notified, require that"-
| Clause | What may be required |
|---|---|
| (a) | Applications, returns, reports, statement of accounts or any other particulars or document required to be filed or delivered under the Act or the rules "shall be filed in the electronic form and authenticated" |
| (b) | Any document, notice, communication or intimation required to be served or delivered under the Act "shall be served or delivered in the electronic form and authenticated" |
| (c) | Applications, returns, reports, statement of accounts, registers, bye-laws or any other particulars, documents and returns filed under the Act or the rules "shall be maintained by the Central Registrar in the electronic form and registered or authenticated, as the case may be" |
| (d) | Inspection of bye-laws, returns, reports, statement of accounts or other particulars or documents maintained in electronic form, as is otherwise available for inspection, "may be made by any person through the electronic form" |
| (e) | Fees, charges or other sums payable under the Act or the rules "shall be paid through the electronic form" |
All of this is "in such manner as may be prescribed". The date is left to a notification. No notification under s.120A is in the sources, and this article says nothing about whether a date has been notified or any system set up; the reader should check the current notifications. Readers should also check the current law for the corresponding provisions of the Information Technology Act, 2000 (21 of 2000), which the section names.
The word "may" matters: s.120A(1) does not itself make electronic filing compulsory from 3 August 2023. It empowers the Central Government to require it from a notified date. The rule-making clauses (xa) and (xb) added to s.124(2) refer to "the manner of powers being exercised by the Central Government in respect of matters relating to filing of applications, documents, inspections and the like in electronic form under sub-section (1) of section 120A". Amending rules were notified on 4 August 2023 (G.S.R. 591(E)); the consolidated Rules should be checked. This article gives no rule content.
Example. A cashier of the invented Teesta Multi-State Housing Society asks whether the annual return can be filed on paper. Section 120A does not answer that by itself. It depends on whether the Central Government has notified a date under s.120A(1)(a) and on the manner prescribed; the position should be checked before filing. A society unsure about the position can ask for legal consultation.
Section 120A(2): the Central Registrar's functions
"The Central Registrar shall- (a) issue certificate of registration; (b) register the amendment of bye-laws; (c) register change of registered office; (d) register any document; (e) issue any certificate; (f) issue notice; and (g) receive such communication as may be required to be registered or issued or recorded or received, as the case may be, under this Act or the rules made thereunder or perform duties or discharge functions or exercise powers under this Act or the rules made thereunder or do any act which is by this Act directed to be performed or discharged or exercised or done by the Central Registrar, in the electronic form in such manner as may be prescribed."
Two observations. First, unlike sub-section (1), sub-section (2) is not preceded by "from such date as may be notified", and it says "shall". The sources do not say whether the date in sub-section (1) governs sub-section (2). Second, the sub-section is one long sentence; clause (g) runs on into the closing words about "duties", "functions" and "powers", and the print is quoted as it stands. Our article on filing of annual returns covers the s.120 returns that clause (a) of sub-section (1) could reach.
Section 120B: incorporation, regulation, winding up and banking
"The provisions of this Act shall apply to a multi-State co-operative society in respect of matters relating to incorporation, regulation and winding up: Provided that in case of a multi-State co-operative society carrying on the business of banking, the provisions of the Banking Regulation Act, 1949 shall also apply." The marginal heading is "Application of Banking Regulation Act, 1949."
The Act does not define "incorporation", "regulation" or "banking" here. The proviso says the Banking Regulation Act, 1949 "shall also apply", not that it replaces this Act. Readers should check the current law for the corresponding provisions of the Banking Regulation Act, 1949. For banks, the same Act is named in s.86(5) as substituted for winding up; see our articles on winding up of multi-State co-operative societies and winding up of a co-operative bank and deposit insurance.
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| s.120A | No such section | Inserted: electronic filing, service, records, inspection and payment from a notified date; Central Registrar's functions in electronic form |
| s.120B | No such section | Inserted: Act applies for incorporation, regulation and winding up; Banking Regulation Act, 1949 also applies to societies carrying on banking |
| s.124(2)(xa), (xb) | Not present | Rule-making clauses for the manner of electronic functions |
Need help with filings, records or banking compliance?
Electronic filing depends on a notified date and a prescribed manner, and a society carrying on banking has another law beside this Act. Our team can look at your filing position and the provisions that apply with you through legal consultation.
Key takeaways
- Section 120A lets the Central Government, from a date to be notified, require electronic filing, service, record-keeping, inspection and payment under the Act.
- The manner is left to rules; the date is left to a notification that is not in the sources.
- Section 120A(2) lists the Central Registrar's functions to be done in electronic form.
- Section 120B applies the Act for incorporation, regulation and winding up and adds the Banking Regulation Act, 1949 for banking business.
- Both sections were inserted by the 2023 Act, in force from 3 August 2023.
Read next
- Multi-State Co-operative Societies Act, 2002: complete guide
- Section 120: filing of annual returns
- Section 86: winding up of multi-State co-operative societies
- Section 124: power to make rules
Disclaimer: Based on the Ministry of Cooperation copy of the Multi-State Co-operative Societies Act, 2002 read with the Multi-State Co-operative Societies (Amendment) Act, 2023 (in force from 3 August 2023), as consulted on 2 October 2026. The Multi-State Co-operative Societies Rules, 2002 as amended, later notifications and later amendments are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.