Nidhi (NBFC) Compliance

These Compliance are very much important. Otherwise, the company will be at default.

Not Less than 200 Members: After incorporation, a Nidhi company must add at least 200 members to comply with this requirement of law. Further, it has to maintain this during the course of time. If the total members falls less than 200 at anytime thereafter, it will leave the company at default.

However, your company is not able to maintain the limit of 200 members, then you must apply for an of time within 30 days of closure of financial year in Form NDH-2 with Regional Director.

Net Owned Funds of 10 lakh or more: In a layman language, Net owned funds means amount invested into the business. As already stated, this requirement can be fulfilled by registering the company at INR 10 lakh capital.

Acceptance of deposits by Nidhi Company and Net owned funds.

(1) A Nidhi shall not accept deposits exceeding twenty times of its Net Owned Funds (NOF) as per its last audited financial statements.

(2) In the case of companies covered under clauses (a) and (b) of rule 2and existing on or before 26th July, 2001 and which have accepted deposits in excess of the aforesaid limits, the same shall be restored to the prescribed limit by increasing the Net Owned Funds position or alternatively by reducing the deposit according to the table given below:

Ratio of Net Owned Funds to Deposits (as on 31.3. 2013) Date by which the company has to achieve prescribed ceiling of 1:20
a) More than 1:20 but upto 1:35 By 31.3. 2015
b) More than 1:35 but upto 1:45 By 31.3. 2016
c) More than 1:45 By 31.3. 2017

(3) The companies which are covered under the Table in sub-rule (2)above shall not accept fresh deposits or renew existing deposits if such acceptance or renewal leads to violation of the prescribed ratio.

(4) The ratio specified in sub-rule (2) above shall also apply to incremental deposits.

Ozg Nidhi / Mutual Benefit Co. Experts

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