Nidhi Company in India General restrictions Rule 6 provides general restrictions.   According to this Rule no Nidhi shall- Carry on the business of Chit Fund, Hire Purchase Finance, Leasing Finance, Insurance or Acquisition of Securities issued by anybody corporate;   Issue Preference Shares, Debentures or Any Other Debt Instrument by any name or in any form Read More →

Nidhi Company in India IPORTANT POINT: Dividend: A Nidhi shall not declare dividend exceeding 25%or Such higher amount as may be specifically approved by the Regional Director for reasons to be recorded in writing and further subject to the following conditions- An equal amount is transferred to General Reserve; There has been no default in Read More →

Nidhi Company

COMPANY LAW: FAQs – Nidhi Company and its Operations What is Nidhi Company? A Nidhi Company is a Company which carries on the business of accepting deposits and lending the same on demand. Nidhi Company is similar to NBFC but the only basic difference between the two is that Nidhi Companies accept deposits only from its members. Read More →

COMPANY LAW Restrictions on loans given by Nidhi Companies With the increase in demand of credit in the country, the Ministry of Corporate Affairs came up with the concept of Nidhi Company wherein the word Nidhi means ‘treasure’  with the object of cultivating the habit of thrift and saving amongst its members, receiving deposits from, Read More →

nidhi company

Provisions of Loan in Nidhi Company: (1) A Nidhi shall provide loans only to its members. (2) The loans given by a Nidhi company to a member shall be subject to the following limits, namely:- (a) two lakh rupees, where the total amount of deposits of such Nidhi from its members is less than two Read More →


Deposits in Nidhi Company (1) The fixed deposits shall be accepted for a minimum period of six months and a maximum period of sixty months. (2) Recurring deposits shall be accepted for a minimum period of twelvemonths and a maximum period of sixty months. (3) In case of recurring deposits relating to mortgage loans, the Read More →