Regulation of Nidhi and Mutual Benefit Societies: restrict pledge and lending, require minimum capital and RBI aligned interest controls. Companies declared as Nidhi or Mutual Benefit Societies are prohibited from pledging member lodged securities and from giving loans or advances exceeding the lower of a fixed loan ceiling and a specified proportion of total deposits. They must ensure that the total of their net owned fund and preference share capital meets a prescribed minimum, subject to revision by the Central Government in consultation with the Reserve Bank of India, with transitional time allowed for existing societies; interest rates on deposits and loans must conform to Reserve Bank regulations.