The Ministry of Corporate Affairs (MCA) has introduced a comprehensive quarterly compliance chart for Nidhi companies, marking a significant step towards strengthening regulatory oversight in the sector. This structured framework mandates regular submission of key operational and financial data, including the NDH-2 form, which captures critical details about deposits, loans, and membership statistics. The new requirements aim to enhance transparency while helping regulators identify potential red flags like liquidity shortfalls or irregular lending practices at an early stage.

Under the revised compliance regime, Nidhi companies must now submit quarterly returns within 15 days of each quarter-end, along with maintaining prescribed liquid assets equivalent to 15% of deposits. The chart clearly outlines additional compliance obligations including member verification audits and detailed reporting of secured versus unsecured loan portfolios. These measures are designed to ensure these member-focused financial institutions maintain proper financial discipline while continuing to serve their core purpose of promoting thrift and mutual benefit among members.

The MCA has warned of strict consequences for non-compliance, including substantial late fees potentially running up to ₹5,000 per day and possible suspension of deposit acceptance privileges. For chronically non-compliant entities, the ministry may initiate compulsory strike-off proceedings. This quarterly compliance mechanism replaces the previous annual reporting system, reflecting regulators’ growing emphasis on real-time monitoring in the Nidhi company sector to prevent fraud and protect depositor interests.