According to the Nidhi Company New Rules, public companies that want to operate as Nidhi Companies must first obtain a prior declaration from the Government of India before accepting deposits. These modifications are made to ensure the general public's protection and safety.
The Nidhi Company New Rules 2022 include more than ten amendments. The following are the amendments:

Branch

Branch The definition of the Branch has been added. This rule defines a branch as a location other than Nidhi limited company registration office.

Raised deposit of the company -
No company shall raise a deposit for any member or make a loan to any of its members if

● It violates the rules and requirements of the Nidhi Company New Rules,
● If the application in Form NDH -4 has been rejected by the central government, nothing written under these rules shall apply to the company incorporated on or after the commencement of these Nidhi Company New Rules.

However, nothing in these rules shall apply to any company formed on or after the effective date of these Nidhi Company New Rules.

Nidhi Company Declaration -

Any public company that wishes to be declared as a Nidhi company must submit documents of Nidhi company formation as an application in Form NDH-4 within 120 days of its incorporation of Nidhi finance company, after fulfilling the following conditions:
1. It has at least 200 members.
2. It has at least Rs. 20 lacs in net owned funds.

After reviewing the application, the central government informs the company of its decision within 45 days; if the company does not respond within 45 days, it is deemed to be approved.

When the central government is satisfied that the company meets all of the requirements, it will officially register it as a Nidhi Company or Mutual Benefit Society. However, the company will not be able to operate until the central government approves its application.

Appropriate person,
The company must include a declaration from all of its directors and promoters that they are fit and proper people with Form NDH-4.

The following criteria should be considered when determining whether a promoter or director is fit and proper:

Integrity, honesty, ethical conduct, fairness, reputation, and personality

Not being disqualified for any of the following reasons:
(a) Integrity, honesty, ethical conduct, fairness, reputation, and personality
(b) Not being disqualified for any of the following reasons:

1. Any complaint or information filed or pending against him under Section 154 of the CrPC
2. A chargesheet was filed against him for economic crimes
3. A restraining order, prohibition order, or department order has been issued against him in any matter pertaining to company law, securities law, or the financial market in force.
4. A conviction order for moral turpitude was issued against him.
5. Declared involvement but has yet to be discharged
6. Mental infirmity
7. Deliberate defaulter
8. An economic offender on the run
9. Chairman of five or more corporations
10. Such a person is a director in five or more Nidi Companies or a promoter in three or more Nidi Companies.
Basic paid-up share capital
The amendment increased the minimum paid-up share capital from 5 lakhs to 10 lakhs.