Consider the following statements regarding Nidhi Companies: 1. A Nidhi Company is registered under the Companies Act, 2013 and does not require a license from the Reserve Bank of India (RBI). 2. Nidhi Companies are allowed to accept deposits from the general public but not allowed to lend to non-members. 3. Nidhi Companies are prohibited from engaging in insurance, securities trading, or issuing preference shares and debentures. Which of the above statements is/are correct? |ForumIAS

[A] 1 and 2 only

[B] 1 and 3 only

[C] 2 and 3 only

[D] 1, 2 and 3

Answer: B

Notes:

Explanation:

Nidhi Companies are registered under Section 406 of the Companies Act, 2013 and are exempt from requiring RBI licensing, though they fall under the NBFC category.
Nidhi Companies cannot accept deposits from the general public. They can accept deposits only from their registered members and also lend only to members, not to outsiders.
They are prohibited from engaging in activities like insurance, chit funds, securities trading, and from issuing preference shares, debentures, or any other debt instruments.

Source: Indian Economy (Ramesh singh)