ACCEPTANCE OF DEPOSIT BY THE NIDHI COMPANY-

Rule-11 of the Nidhi Rules, 2014

1. Net owned fund to deposit Ratio

Not More than 1:20

2. Maximum limit of Accepting deposit

Not More than 20 Times of its Netowned Funds as per its latest Audited Financial Statements.

3. In case of Company registered under the previous companies Law i.e in section 620A of the Companies Act, 1956

Company existing on or before 26th July 2001, which have accepted deposits in excess of the aforesaid limits, the same shall be restored to the prescribed limit by increasing the NOF position or by reducing the deposits in alternative;

Net owned funds to deposit ratio as on 31.03.2013 Date on which the Compan have to achieve the 1:20 Ratio
More than 1:20 but up to 1:35 31.3.2015
More than 1:35 but upto 1:45 31.3.2016
More than 1:45 31.3.2017

The companies covered under this shall not accept fresh deposit or renew existing deposit in violation of the prescribed Ratio.

APPLICATION FOR DEPOSIT-

Rule 12 of Nidhi Rules, 2014

4. Particulars to be mentioned in the Application form

1. Name of the Nidhi Company

2. Date of Incorporation,

3. The date of filling NDH-4

4. The business of the Company;

5. Management of the Company;

6. Net profit before making provision for tax

7. Dividend declare by company in last 3 preceding Years

8. Mode of repayment of deposit;

9. Maturity period of deposit,

10. Interest payable

11. in case of depositor withdraw the deposit before the maturity period, the rate of interest payable,

12. Terms & Conditions subject to which deposit may be accepted;

13 Profit before tax;

14. Provision for tax

15. Dividend per share, etc

5. Summary of the financial shall also be mentioned in the application form

It shall be as follows:

1. NOF

2. Deposit accepted

3. Deposit Repaid

4. Deposit Claimed but unpaid

5. Loan disbursed against-

a. Immovable property,

b. deposit;

c. Gold & Jewelary;

6. Miscellaneous details

1. in case of default in non- payment of deposit or part thereof, the depositors may move to NCLT.

2. In case of deficiency of services by the Nidhi, the Depositor may approach to the NCDRC/SCDRC/DCDRC

3. Declaration by the boards that financial position of the Nidhi as disclosed and representation made in application shall give true and fair and it has  complied with the applicable laws, rules

4. A statement that CG does not undertake any responsibility for financial soundness of the Nidhi or for the correctness

5. The deposit accepted by the Nidhi shall not be insured by CG or RBI;

6. Verification clause by the depositors

7. Documentary evidence from the depositors

Nidhi Company shall obtained the documentary evidence from the depositor

Identity Proof  (Any of the following like);

i. Passport

ii. Unique Identification No.;

iii. PAN;

iv. Voter ID;

v. Ration card

Address Proof

i. Passport

ii. UIN;

iii. Voter ID;

iv. Driving License;

v. Ration card;

vi. Telephone Bill (shall not be more than 2 months old)

vii. Bank statements (shall not be more than 2 months old)

viii. electricity Bill (shall not be more than 2 months old)

DEPOSITS AND THEIR TERMS-

Rule 13 of Nidhi Rules, 2014

8. Fixed Deposit duration

Min. for 6 Months and Max. for 60 Months

9. Recurring Deposit duration

Min. for 12 Months and Max. for 60 Months

10. Recurring deposit relating to Mortgage loan

In such case the maximum period of recurring deposits shall correspond to the repayment period of such loans granted by Nidhi.

11. Maximum balance in deposit saving account and interest

Max. 1 lakh at any point of time

Max rate of interest shall be 12%

12. Interest on Fixed and recurring deposit

It may offer interest on fixed and recurring deposits at a rate not exceeding the maximum rate of interest prescribed by the Reserve Bank of India which the Non-Banking Financial Companies can pay on their public deposits.

13. Condition for foreclosure of account by the depositor

1. A Nidhi company shall not pay any deposit within a period of 3 Months from the date of its acceptance;

2. where at the request of the depositor, a Nidhi repays any deposit after a period of three months, the depositor shall not be entitled to any interest up to six months from the date of deposit;

3. where at the request of the depositor, a Nidhi makes repayment of a deposit before the expiry of the period for which such deposit was accepted by Nidhi, the rate of interest payable by Nidhi on such deposit shall be reduced by 2%. from the rate which Nidhi would have ordinarily paid, had the deposit been accepted for the period for which such deposit had run:

Provided that in the event of death of a depositor, the deposit may be repaid prematurely to the surviving depositor or depositors in the case of joint holding with survivor clause, or to the nominee or to legal heir with interest up to the date of repayment at the rate which the company would have ordinarily paid, had such deposit been accepted for the period for which such deposit had run.

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