DOOARS INDIA NIDHI LIMITED

WE AT DOOARS-INDIA NIDHI LIMITED LTD STIMULATE THE MUTUAL GROWTH OF OUR MEMBERS THROUH TRUST AND RESPONSIBILTY AND IN THIS PROCESS. What is a Nidhi Company
Nidhi Company is one of the non-banking Indian Finance sectors and recognized under section 620A of the Companies Act, 1956. Their main business is borrowing and lending money only between their members. borrowing from members and lending to me

mbers only, are known under different names such as Nidhi, Permanent Fund, Benefit Funds, Mutual Benefit Funds, and Mutual Benefit Companies. You can do financial business like collecting deposits from members in form of fixed deposit, recurring deposit, open savings accounts of members and distribute loans to members(personal, properly, mortgage, jewelry, gold, vehicle, etc. Nidhis are more popular in South India and are highly localized single office institutions. They are mutual benefit societies because their dealings are restricted only to the members, and membership is limited to individuals. The principal source of funds is the contribution from the members. A Nidhi company is supposed to carry out all its schemes and plans as per the guidelines of RBI. It cannot carry out any plan either loan or deposit of more than five years. The loans are given to the members at relatively reasonable rates for purposes such as house construction or repairs and are generally secured. The deposits mobilized by Nidhis are not much when compared to the organized banking sector. Nidhi in the Indian context means “treasure”. However, in the Indian sector, it refers to any mutual benefit society notified by the Central Government as a Nidhi Company. They are created mainly for promoting the habit of thrift and savings amongst its members. A Nidhi company is supposed to make 200 members in the first financial year. In case if it is not able to do so, it has to seek permission from the registrar of companies for granting an extension to make 200 members. A Nidhi company is supposed to keep 10 percent of total deposits collected in every month as fixed deposit in any nationalized bank. A Nidhi company can only close its branch if it has published an advertisement in the newspaper in vernacular language in the place where it carries on business at least 30 days prior to such closure, informing the public about such closure. The fixed deposit plans carried out by the mutual benefit company or a Nidhi company shall be for a minimum period of six months and a maximum period of sixty months. In the case of recurring deposits, it shall be for a minimum period of 12 months and a maximum period of sixty months.