Nidhi company regulation updated: new business permissions, capital ratio timelines, governance, KYC requirements and auditor limits. The notification amendments permit compliant Nidhi companies to carry on insurance broking, locker services and member advisory work with regulatory approval, provided mortgage and jewel loan income remains at least 80% of gross income. They reset deadlines for achieving a net owned fund to deposits ceiling of 1:20 according to existing ratio bands, require RBI 'know your customer' documentary evidence for new depositors, allow post office deposits in the company's name, reduce a specified interest percentage to five per cent, limit continuous directorship to ten years, and bar reappointment of auditors after five continuous years.
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Nidhi company regulation updated: new business permissions, capital ratio timelines, governance, KYC requirements and auditor limits.
The notification amendments permit compliant Nidhi companies to carry on insurance broking, locker services and member advisory work with regulatory approval, provided mortgage and jewel loan income remains at least 80% of gross income. They reset deadlines for achieving a net owned fund to deposits ceiling of 1:20 according to existing ratio bands, require RBI 'know your customer' documentary evidence for new depositors, allow post office deposits in the company's name, reduce a specified interest percentage to five per cent, limit continuous directorship to ten years, and bar reappointment of auditors after five continuous years.
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