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What is the rules of Nidhi Company?

 A Nidhi company is a type of non-banking financial company (NBFC) in India that is specifically organized for the purpose of cultivating the habit of thrift and savings among its members, and receiving deposits from, and lending to, its members only.

The rules and regulations for Nidhi companies are prescribed under the Companies Act, 2013 and the Nidhi Rules, 2014. Some of the key rules for Nidhi companies are as follows:

  • Incorporation: A Nidhi company must be incorporated as a public company and must contain the word "Nidhi" in its name.
  • Share capital: The minimum share capital for a Nidhi company is Rs. 5 lakh, with a minimum paid-up capital of Rs. 1 lakh.
  • Membership: A Nidhi company can have only individual members and cannot accept deposits from or lend to non-members.
  • Deposits: A Nidhi company can accept deposits from its members only, and the maximum deposit that can be accepted from a single member is restricted to 20% of the member's net worth as per the last audited balance sheet.

  • Lending: A Nidhi company can lend money only to its members, and the maximum amount that can be lent to a single member is restricted to 10 times the member's deposits with the company.
  • Returns: A Nidhi company is required to file annual returns with the Ministry of Corporate Affairs, and must also appoint a statutory auditor to audit its accounts.
  • Liquidity: A Nidhi company must maintain a minimum liquidity ratio of 20% at all times, meaning it must have at least 20% of its deposits in the form of liquid assets such as cash or government securities.

I hope this information is helpful! If you have any further questions, please don't hesitate to ask.


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