{"id":26625,"date":"2025-11-08T12:54:21","date_gmt":"2025-11-08T07:24:21","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=26625"},"modified":"2025-11-10T16:11:03","modified_gmt":"2025-11-10T10:41:03","slug":"nidhi-companies","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/nidhi-companies\/","title":{"rendered":"Nidhi Companies"},"content":{"rendered":"<h2><strong>About Nidhi Companies:<\/strong><\/h2>\n<ul>\n<li>A NIDHI Company is recognised under Section 406 of <strong>the Companies Act2013 <\/strong>and typically operates in the <strong>Non-Banking Financing Sector<\/strong> of India.<\/li>\n<li>It is formed to <strong>borrow and lend money<\/strong> to its members. It inculcates the habit of saving among its members and works on the principle of mutual benefit.\u00a0<\/li>\n<li>It <strong>isn\u2019t required<\/strong> to receive the<strong> license<\/strong> from <a href=\"https:\/\/vajiramandravi.com\/current-affairs\/reserve-bank-of-india\/\" target=\"_blank\"><strong>Reserve Bank of India<\/strong> (RBI)<\/a>, as these are registered with the companies act.<\/li>\n<li><strong>Members:<\/strong> Minimum of <strong>seven members<\/strong> is required to start a Nidhi Company out of which three members must be the directors of the company.<\/li>\n<li><strong>Activities Prohibited in a Nidhi Company<\/strong>\n<ul>\n<li>It can\u2019t deal with chit funds, hire-purchase finance, leasing finance, insurance or securities business.<\/li>\n<li>It is strictly <strong>prohibited from accepting deposits <\/strong>from or lending funds to, any other person except members.<\/li>\n<li>Nidhi companies should not issue preference shares, debentures or any other debt instrument in any manner, name or form.<\/li>\n<li>Nidhi companies should not open current accounts with their members.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1: What is a Non-Banking Financial Company (NBFC)?<\/h3>\n<p>A NBFC is a company registered under the Companies Act, 1956, engaged in the business of loans and advances, the acquisition of shares\/stocks\/bonds\/debentures\/securities issued by the Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/economictimes.indiatimes.com\/news\/india\/mca-cracks-down-on-errant-nidhi-companies-penalises-two-dozen-in-a-fortnight\/articleshow\/113333786.cms?from=mdr\" target=\"_blank\" rel=\"nofollow noopener\">MCA cracks down on errant Nidhi companies, penalises two dozen in a fortnight<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nidhi Companies is recognised under Section 406 of the Companies Act 2013 and typically operates in the Non-Banking Financing Sector of India.<\/p>\n","protected":false},"author":5,"featured_media":26626,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-26625","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/26625","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=26625"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/26625\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/26626"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=26625"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=26625"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=26625"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}