Key Compliance Requirements for NIDHI Companies

1. Minimum Capital Requirement
A NIDHI company must have a minimum paid-up equity share capital of INR 5 lakhs. This capital requirement ensures the company's financial stability and ability to fulfill its objectives effectively.

2. Membership Criteria
Membership in a NIDHI company is open to individuals only. Companies, trusts, and partnerships cannot become members. Members must fulfill criteria such as residency status and minimum age requirements as specified in the company's by-laws.

3. NIDHI Rules Compliance
NIDHI companies must adhere to the rules outlined in the Companies Act, 2013, and the NIDHI Rules, 2014. These rules govern various aspects such as membership acceptance, loan disbursement limits, and reporting requirements to regulatory authorities.

4. Net Owned Funds (NOF) Requirement
Maintaining a healthy Net Owned Funds (NOF) is crucial for NIDHI companies. The NOF represents the company's net worth, calculated as the difference between its assets and liabilities. The minimum NOF requirement ensures financial stability and credibility.

5. Restriction on Activities
NIDHI companies are restricted from engaging in activities such as trading, manufacturing, or providing services other than lending and borrowing among members. This restriction ensures that the company focuses on its core objective of financial inclusion and microfinance.