Un-encumbered term deposits requirement governs Nidhi liquidity cover and permits limited withdrawal for depositor repayment. Every Nidhi must keep invested not less than ten per cent of deposits outstanding, in its own name, in un-encumbered term deposits with a scheduled commercial bank or post office deposits. Temporary withdrawal may be permitted for unforeseen commitments only with prior approval of the Regional Director, by application in the specified form and fee, for repayment to depositors, subject to conditions and a time limit ensuring restoration of the prescribed ten per cent limit.
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.
Un-encumbered term deposits requirement governs Nidhi liquidity cover and permits limited withdrawal for depositor repayment.
Every Nidhi must keep invested not less than ten per cent of deposits outstanding, in its own name, in un-encumbered term deposits with a scheduled commercial bank or post office deposits. Temporary withdrawal may be permitted for unforeseen commitments only with prior approval of the Regional Director, by application in the specified form and fee, for repayment to depositors, subject to conditions and a time limit ensuring restoration of the prescribed ten per cent limit.
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