Regulation of Nidhi and Mutual Benefit Societies: restrictions on non-core activities and strengthened governance requirements. The Central Government prescribes prohibitions and operational limits for companies declared as Nidhi or Mutual Benefit Societies, including restrictions on non-core business activities, branch expansion, membership admissions, new equity issues to non-depositors, financial dealings with non-members, unsecured lending and pledge of member security, limits on deposit mobilization and loan exposure, and a conversion consequence to non-banking financial company status where deposit thresholds are exceeded.
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Regulation of Nidhi and Mutual Benefit Societies: restrictions on non-core activities and strengthened governance requirements.
The Central Government prescribes prohibitions and operational limits for companies declared as Nidhi or Mutual Benefit Societies, including restrictions on non-core business activities, branch expansion, membership admissions, new equity issues to non-depositors, financial dealings with non-members, unsecured lending and pledge of member security, limits on deposit mobilization and loan exposure, and a conversion consequence to non-banking financial company status where deposit thresholds are exceeded.
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