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<h1>Nidhi Companies Limited to 25% Dividend Annually by Nidhi Rules 2014; Approval for Higher Dividend Removed in 2022</h1> A Nidhi company is restricted from declaring a dividend exceeding twenty-five percent in a financial year, as per the Nidhi Rules, 2014. This provision was updated in April 2022, removing the previous allowance for a higher dividend with Regional Director approval, which was contingent upon transferring an equal amount to the General Reserve, ensuring no default in repayment of matured deposits and interest, and compliance with all applicable rules.