Description

A Non-Banking Financial Company by classification, a Nidhi Company takes deposits and loans money only to its clients. Under the Nidhi Rules, 2014, these groups are important to encourage member financial action. A smooth operation of Nidhi Companies depends heavily on obedience to these rules.

To guarantee efficient operation and maintain the trust of its members, Nidhi Companies must live by a number of rules. The legal duties of these companies are described in the Nidhi Rules, 2014, and include having up-to-date books of accounts, holding yearly general meetings, giving financial statements and annual reports, and getting the necessary clearances from the RBI and MCA. Penalties, legal problems, and a ruined market image can all follow from failure with these rules.

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