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Procedure for incorporation of nidhi company nidhi company rules by rbi
A nidhi company, is one that belongs to the non-banking Indian finance sector and is recognized under section 406 of the Companies Act, 2013. Their core business is borrowing and lending money between their members. They are also known as Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company. They are regulated by Ministry of Corporate Affairs. Reserve Bank of India is empowered to issue directions to them in matters relating to their deposit acceptance activities. However, in recognition of the fact that these companies deal with their shareholder-members only.
Contents
- Procedure for incorporation of nidhi company nidhi company rules by rbi
- Advance nidhi software for nidhi company management
- Governing Law
- List of Some Nidhi Companies In India
- References
Nidhi companies existed even prior to the existence of companies Act 1913. The basic concept of nidhi is "Principle of Mutuality" ("Paraspara Sahayata"). Thus they function for the common benefit advantage of all their members/share holders. These companies are more popular in South India, and 80% of Nidhi companies are located in Tamil Nadu.
Advance nidhi software for nidhi company management
Governing Law
Nidhi companies is governed by Nidhi Rules, 2014. They are incorporated in the nature of Public Limited company and hence, they have to comply with two set of norms, one of Public limited company as per Companies Act, 2013 and another is for Nidhi rules, 2014. No RBI approval is necessary to register the company, as RBI has specifically exempted this category of NBFC in India to comply with its core provisions such as registration with RBI etc.
List of Some Nidhi Companies In India
- SnehSaad Nidhi Limited
- Achiva Nidhi Limited
- MABEN NIDHI LIMITED
- MOUNTSOFT MUTUAL BENEFIT INDIA NIDHI LIMITED
- Deepmanglam Nidhi Limited
- TAXWAY WEALTH NIDHI LIMITED