Branch opening restrictions: Nidhi may open branches only after sustained profits and with regulatory permission and filing compliance. A Nidhi may open branches only after earning net profits after tax for three consecutive financial years, may open up to three branches within the district, and must obtain prior Regional Director permission in Form NDH-2 with fee for more than three intra-district branches or any branch outside the district; no branches may be opened outside the State of the registered office. Branches cannot be closed without Board approval addressing deposits and loans and prior Regional Director approval in Form NDH-2; after approval the Nidhi must publish a vernacular advertisement, post notices for thirty days and intimate the Registrar in Form NDH-2.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Branch opening restrictions: Nidhi may open branches only after sustained profits and with regulatory permission and filing compliance.
A Nidhi may open branches only after earning net profits after tax for three consecutive financial years, may open up to three branches within the district, and must obtain prior Regional Director permission in Form NDH-2 with fee for more than three intra-district branches or any branch outside the district; no branches may be opened outside the State of the registered office. Branches cannot be closed without Board approval addressing deposits and loans and prior Regional Director approval in Form NDH-2; after approval the Nidhi must publish a vernacular advertisement, post notices for thirty days and intimate the Registrar in Form NDH-2.
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