Nidhi Company is a type of NBFC with the purpose of fostering the habit of savings and thrift amongst its members. These companies accept deposits from their members and lend them to each other for mutual benefits. The Nidhi companies need not obtain a license from RBI. However, they must be registered as a public corporation and have Nidhi limited in their name. The companies act of 1956 mentioned that Nidhi Companies needed a declaration from the central government to function. This declaration was not required under the Companies act 2013. Earlier, the Nidhi company needed to comply with \u2013 i) a minimum of 200 members, ii) Net owned Fund (NOF) of \u20b910 lakh, keeping the NOF to deposit ratio a 1:20, iii) Nidhi needed to keep 10% deposits in the commercial bank\/ post office within a year after 2014 rules. This blog shall provide a Detailed Assessment of New Nidhi Company Rules. <\/p>\n\n\n\n
There were a lot of issues with the implementation of Nidhi companies under the company act 2013. Stakeholders believed that the 1956 Act provided a better framework for the Nidhi companies to operate, and the approval from the central government provided a structured way for these entities to operate. Keeping in mind these points, the Companies Act 2013 amended section 406<\/strong>[1]<\/strong><\/a><\/sup>. And from the year 2019 central government’s approval was reinstated in the rules.<\/p>\n\n\n\n Between 2014-2019 around 10,000 entities applied to become a Nidhi Company. As per the data, roughly 2.300 companies made the required declaration in NDH-4 from. Many entities were found deliberately flouting the compliance norms. So to deal with this, the central government released the New Nidhi company rules-Amendment 2022. These rules will help introduce stability to the Nidhi companies. <\/p>\n\n\n\n Table of Contents<\/p>\n