Rule 3A (Not applicable to companies incorporated after the Nidhi (Amendment) Rules, 2022)

Nidhi shall file NDH-4 within sixty days from the date of expiry of:

1. One year from the date of Incorporation 
2. The period up to which extension of time given by The Regional Director

Nidhi shall file NDH-4 within sixty days from the date of expiry of:

1. One year from the date of Incorporation
2. The period up to which extension of time given by The Regional Director

Rule 3B (Applicable to a company incorporated on or after the Nidhi (Amendment) Rules, 2022

• New Nidhi Shall file NDH-4 within 120 days from the date of Incorporation< if it fulfills the following conditions:

1. Not less than 200 members
2. Net Owned Funds of Rs. 20 Lakhs or more

• NDH-4 of such a company where a person is a director in five or more Nidhi companies or is a promoter of 3 or more Nidhi companies will not be approved.
• The Director and Promoter of the company should fulfill fit and proper person criteria as per the rule.
• The central government shall examine the NDH-4 within 45 days after that the same shall be deemed approved
• In Case a Nidhi Company does not comply with the requirements of NDH-4 it shall not be allowed to File SH-7 and PAS-3.
• The company shall commence its business only after the approval of NDH-4. 
• This rule shall not apply to public companies incorporated under the Act before the date of commencement of the Nidhi (Amendment) Rules, 2022

Rule 4

The minimum Paid-up Capital for Nidhi Company is 5 Lakhs

The minimum Paid-up Capital for Nidhi Company is 10 Lakhs

The provisions of Rule 5 shall not be applicable for the companies incorporated as Nidhi

Rule 6

• Clause (d) acquire another company by purchase of securities or control the composition of the Board of Directors of any other company in any manner whatsoever or enter into any arrangement for the change of its management unless it has passed a special resolution in its general meeting and also obtained the previous approval of the Regional Director having jurisdiction over such Nidhi;

• for clause (d), the following clause shall be substituted, namely: -

 “(d) acquire or purchase securities of any other company or control the composition of the Board of Directors of any other company in any manner whatsoever or enter into any arrangement for the change of its management”;

• After clause (k), the following clause shall be inserted, namely:-

“ (l) raise loans from banks or financial institutions or any other source for the purpose

of advancing loans to members of Nidhi”.

In rule 8, of the said rules, after sub-rule (3), the following sub-rule shall be inserted

“(4) A member shall not transfer more than fifty percent of his shareholding (as on the date of 

availing of loan or making of deposit) during the subsistence of such loan or deposit, as the case 

maybe.

Provided that the member shall retain the minimum number of shares required under subrule (3) of rule 7 at all times”.

Rule 9

Net Owned Fund of Nidhi Shall not less than Rs.10 lakh

• Net Owned Fund of Nidhi Shall not be less than Rs.20 lakh

• “ Provided that every Nidhi existing as on the date of commencement of the Nidhi (Amendment) Rules,2022 shall comply with this requirement within eighteen months from the date of such commencement”

Rule 10

(4) No Nidhi shall open branches or collection centers or offices or deposit centers, or by whatever name called outside the State where its registered office is situated. 

(5) No Nidhi shall open branches or collection centers or offices or deposit centers, or by whatever name called unless a financial statement and annual return (up to date) are filed with the Registrar.

• In sub-rules (4) and (5), the words “or collection centers or offices or deposit centers, or by whatever name called” shall be omitted;

Rule 10

For sub-rule (6), the following sub-rule shall be substituted, namely:

“(6) (a) A Nidhi shall not close any branch, unless, -

(i) the proposal to close the branch along with the plan as to how the existing deposits have been or shall be paid off and how the existing loan shall be recovered is duly approved by the Board at its meeting; and

 (ii) it has obtained the prior approval of the Regional Director by applying in Form NDH-2 along with fee as specified in the Companies (the Registration Offices and Fees) Rules, 2014 at least sixty days before such closure. Provided that the Regional Director shall consider such application and pass orders within thirty days of receipt of such application.

 (b) After obtaining approval from the Regional Director, the Nidhi shall-

(i) publish an advertisement, as per format NDH-5, in a newspaper in vernacular language in the place where it carries on business at least thirty days before such closure, informing the public about such closure;

(ii) fixes a copy of the such advertisement or a notice informing such closure of the branch on the notice board of Nidhi as well as the relevant Branch for at least thirty days from the date on which the advertisement was published;

(iii) give an intimation to the Registrar within thirty days of such closure in Form NDH-2 along with fee as specified in Companies (the Registration Offices and Fees) Rules, 2014”.

Rule 10

After sub-rule (6), the following sub-rule (7) shall be inserted, 

“(7) Any place, not being a registered office or a branch, where a Nidhi carries on its operation shall be closed within six months from the date of commencement of the Nidhi (Amendment) Rules,2022 and intimation shall be sent to the Registrar in this regard in Form NDH-2.”

Rule 12

Loans disbursed against-

(a) immovable property;

(b) deposits; and

(c) gold and jewelry

Loans disbursed against-

(a) immovable property;

(b) deposits; and

(c) gold, silver, and jewelry

In rule 15, of the said rules, in sub-rule (1), the following proviso shall be inserted

“ Provided that in case of joint shareholders, the loan shall be provided to the member

whose name appears first in the Register of members”

For rule 18 of the said rules, the following rule shall be substituted

“18. Dividend. A Nidhi shall not declare a dividend exceeding twenty-five percent in a financial

year”.

Rule 20

(6) In respect of loans against gold or jewelry-

(a) the aggregate amount of loan outstanding against the security of gold or jewelry shall either be recovered

or renewed within three months from the due date of repayment;

(b) if the loan is not recovered or renewed and the security is not sold within the aforesaid period of three

months, the company shall make provision in the current year’s financial statements to the extent of

unrealized amount or the aggregate outstanding amount of loan including interest as applicable;

(c) no income shall be recognized on such loans outstanding after the expiry of the three months specified

in (a) above or sale of gold or jewelry, whichever is earlier; and

(d) the loan to value ratio shall not exceed 80 percent.

(6) In respect of loans against gold, silver, or jewelry—

(a) the aggregate amount of loan outstanding against the security of gold, silver, or jewelry shall either be recovered or renewed within three months from the due date of repayment;

(b) if the loan is not recovered or renewed and the security is not sold within the aforesaid period of three months, the company shall make provision in the current year’s financial statements to the extent of

Unrealized amount or the aggregate outstanding amount of loan including interest as applicable;

(c) no income shall be recognized on such loans outstanding after the expiry of the three months specified in (a) above or sale of gold, silver, or jewelry, whichever is earlier; and

(d) the loan to value ratio shall not exceed 80 percent.