The Union Finance Ministry has announced enhanced support measures for Nidhi companies maintaining full regulatory compliance, recognizing their role in grassroots financial inclusion. This policy shift includes faster approval processes for compliant firms, subsidized training programs on digital transformation, and priority access to government-backed credit guarantee schemes. The Minister emphasized this will create a “virtuous cycle” where adherence to norms brings tangible business benefits.  

Key initiatives include a proposed “Green Channel” for compliant Nidhis to expand operations across states with reduced paperwork, and inclusion in financial literacy outreach programs. The Ministry is also developing a tiered regulatory framework that will reduce inspection frequency for consistently rule-abiding firms. These measures aim to reward operational transparency while maintaining strict consumer protections in the sector.  

Industry leaders have welcomed the announcement as a balanced approach to sector growth, noting it will help ethical operators compete against unregulated financial entities. The Minister clarified that strengthened monitoring systems will simultaneously weed out non-compliant players, ensuring the support measures benefit only those Nidhi firms maintaining the highest standards of member protection and financial discipline.