Nidhi companies are savings and credit cooperatives that are registered under the Companies Act, 2013. They are regulated by the Reserve Bank of India (RBI).
The main objective of a Nidhi company is to promote the habit of thrift and self-help among its members. It also aims to provide financial assistance to its members in times of need.
Nidhi companies are required to maintain a minimum Net Owned Funds (NOF) of Rs. 5 lakhs. They are also subject to certain other restrictions and requirements under the Companies Act and the RBI regulations.
How Can You make Savings With Nidhi Company in India?
Nidhi companies are savings and credit cooperatives registered under the Nidhi Rules, 2014. The core objectives of Nidhi companies are to promote the habit of thrift and savings amongst its members, to render financial assistance to its members in times of need, and to promote self-employment and entrepreneurship.
Nidhi companies play an important role in the rural and semi-urban areas of India, where access to formal banking channels is often limited.
By providing a safe and convenient platform for savings and credit, Nidhi company helps to empower the economically weaker sections of society and promote financial inclusion.
The Government of India has been supportive of the growth of Nidhi companies, and has provided a number of incentives and benefits for them.
These include income tax exemptions, relaxation in certain reserve requirements, and preferential treatment in government tenders. With over 15,000 Nidhi companies currently in operation, they have emerged as a significant force in the Indian financial landscape.
It is hoped that they will continue to play a key role in the economic development of the country.
Nidhi companies are Savings and Credit Societies which are registered under the Companies Act, 2013. The primary objective of a Nidhi company is to pool funds from members and lend it to members for their economic development. Nidhi companies also promote thrift and financial inclusion by providing small savings accounts and loans to members. Nidhi companies are governed by the Nidhi Rules, 2014.
These rules lay down the eligibility criteria, minimum membership requirements, minimum capital requirements, and other operational guidelines for Nidhi companies.
- The core objectives of a Nidhi company are as follows:
- To promote the habit of thrift and financial inclusion among its members.
- To receive deposits from, and lend funds to, its members.
- To utilise its funds for the benefit of its members.
- To carry out any other business activities as may be prescribed by the Nidhi Rules.
Conclusion:-
The main objective of a Nidhi company is to promote the habit of thrift and savings amongst its members.
It collects funds from its members and invests them in different financial instruments such as shares, debentures, bonds, etc.
The profits earned from these investments are then distributed amongst the members in the form of dividends. Nidhi companies also provide loans to their members at attractive interest rates.
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