{"id":372569,"date":"2026-09-25T15:46:07","date_gmt":"2026-09-25T10:16:07","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=372569"},"modified":"2026-09-25T15:46:07","modified_gmt":"2026-09-25T10:16:07","slug":"nidhi-companies","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/nidhi-companies\/","title":{"rendered":"Nidhi Companies"},"content":{"rendered":"<div class=\"content-box-green\">\n<p><strong>News:<\/strong> The Ministry of Corporate Affairs (MCA) has issued an advisory cautioning the public about Nidhi Companies and their functioning.<\/p>\n<\/div>\n<h2 class=\"red-h2-box\">About Nidhi Companies<\/h2>\n<figure style=\"width: 366px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/blog.ipleaders.in\/wp-content\/uploads\/2020\/05\/Nidhi-Company-1-1-1-1-1-1-1-1-1-1-1-1.png?resize=366%2C209&#038;ssl=1\" alt=\"Nidhi Companies \" width=\"366\" height=\"209\" \/><figcaption class=\"wp-caption-text\">Source: iPleaders<\/figcaption><\/figure>\n<ul>\n<li><strong>Nidhi Companies<\/strong> are<a href=\"https:\/\/forumias.com\/blog\/nbfc\/\"><strong> Non-Banking Financial Companies<\/strong><\/a>\u00a0created to <strong data-start=\"69\" data-end=\"118\">promote saving and thrift among their members<\/strong>.\n<ul>\n<li>They are <strong>exempted from the core provisions of the RBI Act.\u00a0<\/strong><\/li>\n<li>They are classified as<strong> \u201cMutual Benefit Financial Company\u201d by RBI.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>Regulated by:<\/strong> They are regulated by the <strong>Ministry of Corporate Affairs (MCA)\u00a0under the Companies Act, 2013 and Nidhi Rules, 2014. <\/strong><\/li>\n<li><strong data-start=\"0\" data-end=\"12\" data-is-only-node=\"\">Members:<\/strong> A Nidhi Company must have a <strong data-start=\"41\" data-end=\"65\">minimum of 7 members<\/strong>, of whom <strong data-start=\"75\" data-end=\"120\">at least 3 must be appointed as directors<\/strong><\/li>\n<li><strong>Provisions related to Nidhi Company:<\/strong>\n<ul>\n<li>Every company <strong>desirous to function as \u201cNidhi\u201d is required to file application in Form \u201cNDH-4 \u201c<\/strong>for getting itself declared\/ updated as &#8220;Nidhi\u201d.\n<ul>\n<li>The requirement for Central Government declaration of Nidhi Companies was <strong data-start=\"1386\" data-end=\"1422\">reintroduced from 15 August 2019<\/strong> through amendments to <strong>Section 406 of the Companies Act, 2013 and the Nidhi Rules, 2014.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li>It can <strong>accept deposits and give loans<\/strong> <strong>only to their members<\/strong>.<\/li>\n<li>A Nidhi Company <strong data-start=\"62\" data-end=\"72\">cannot &#8211;<\/strong>\n<ul>\n<li>Open <strong data-start=\"344\" data-end=\"392\">current accounts in the names of its members<\/strong>.<\/li>\n<li>Deal in <strong data-start=\"85\" data-end=\"157\">chit funds, hire-purchase, leasing, insurance or securities business<\/strong>.<\/li>\n<li>Issue <strong data-start=\"276\" data-end=\"335\">preference shares, debentures or other debt instruments<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<li>The <strong>deposits accepted by these Companies are not insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC).<\/strong>\u00a0 Therefore, <strong>if a company fails or fraud occurs, recovery of the deposited money may be difficult or incomplete.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: The Ministry of Corporate Affairs (MCA) has issued an advisory cautioning the public about Nidhi Companies and their functioning. About Nidhi Companies Nidhi Companies are Non-Banking Financial Companies\u00a0created to promote saving and thrift among their members. They are exempted from the core provisions of the RBI Act.\u00a0 They are classified as \u201cMutual Benefit Financial&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/nidhi-companies\/\">Continue reading <span class=\"screen-reader-text\">Nidhi Companies<\/span><\/a><\/p>\n","protected":false},"author":10366,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,12039],"tags":[11872,3590],"class_list":["post-372569","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-knolls","tag-9pm-daily-factly","tag-pib","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/372569","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10366"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=372569"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/372569\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=372569"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=372569"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=372569"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}