NIDHI COMPANY
“Nidhi” or “Mutual Benefit Society” means a company-
- Incorporated as a Nidhi in accordance with Section 406 of the Companies Act, 2013 and Nidhi Rules, 2014.
- Complies with Rules prescribed by Central Government
- Object: Cultivate the habit of thrift and savings amongst its members for their mutual benefit.
- Receive deposits from members and Lend only to members.
Incorporation and Incidental matters-
- Public Company
- minimum paid up equity share capital of five lakh rupees or more
- Equity Shares Only
- Part of name ‘Nidhi Limited’
Requirements and fulfillment of following conditions:
- not less than two hundred members
- Net Owned Funds of ten lakh rupees or more
- unencumbered term deposits of not less than ten per cent. of the outstanding deposits
- ratio of Net Owned Funds to deposits of not more than 1:20
- Not to be admitted as a member- Body Corporate, Trust and Minor.
