Rule 12 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 12 says what every application form for placing a deposit with a Nidhi must carry: thirteen heads of particulars, six statements to the depositor, an introduction of new depositors and documentary proof of identity and address. This article reads rule 12 as amended up to G.S.R. 413(E) dated 16 July 2024; later amendments should be checked. Nidhis that want their deposit forms and records reviewed can use our compliance documentation support.
Every deposit application form must carry the particulars in clauses (a) to (m) (including the date of declaration or notification as Nidhi, added in 2019) and the six statements in sub-rule (2), including a Board declaration and the warning that deposits are not insured and repayment is not backed by the Central Government or the Reserve Bank of India. New depositors must be introduced, with one proof of identity and one of address; bills and bank statements must be not more than two months old.
Rule 12(1): particulars the form must contain
"Every application form for placing a deposit with a Nidhi shall contain the following particulars."
| Clause | Particular |
|---|---|
| (a) | Name of Nidhi |
| (b) | Date of incorporation of Nidhi |
| (ba) | The date of declaration or notification as Nidhi (inserted by G.S.R. 467(E), 2019) |
| (c) | The business carried on by Nidhi with details of branches, if any |
| (d) | Brief particulars of the management (name, addresses and occupation of the directors, including DIN) |
| (e) | Net profits before and after making provision for tax for the preceding three financial years |
| (f) | Dividend declared during the preceding three financial years |
| (g) | Mode of repayment of the deposit |
| (h) | Maturity period of the deposit |
| (i) | Interest payable on the deposit |
| (j) | Rate of interest payable if the depositor withdraws prematurely |
| (k) | Terms and conditions subject to which the deposit may be accepted or renewed |
| (l) | A summary of the financials as per the latest two audited financial statements |
| (m) | Any other special features or terms and conditions |
Clause (l) is a list of nine items: (i) Net Owned Funds, (ii) deposits accepted, (iii) deposits repaid, (iv) deposits claimed but remaining unpaid, (v) loans disbursed against (a) immovable property, (b) deposits and (c) gold and jewellery, (vi) profit before tax, (vii) provision for tax, (viii) profit after tax and (ix) dividend per share.
Silver (2022). G.S.R. 301(E) of 19 April 2022 provides that in sub-rule (1), "after the word 'gold' the word 'silver' shall be inserted". The only "gold" in rule 12(1) is in clause (l)(v)(c), "gold and jewellery". The amendment therefore gives "gold silver and jewellery"; the text prints no comma between the two words. We flag the slip and leave the wording as printed.
The two-year summary in clause (l) and the three-year records in clauses (e) and (f) mean the form needs current audited figures; the Net Owned Funds definition is in our article on rule 3. Rates and periods in clauses (g) to (j) follow rule 13; see our article on rules 13 and 14.
Rule 12(2): the six statements
"The application form shall also contain the following statements."
(a) Non-payment. In case of non-payment of the deposit or part thereof as per the terms and conditions, the depositor may approach the Bench of the National Company Law Tribunal having jurisdiction over the Nidhi. G.S.R. 467(E) of 2019 substituted "Bench of the National Company Law Tribunal" for "Registrar of Companies" in this clause.
(b) Deficiency in service. In case of any deficiency of Nidhi in servicing its depositors, the depositor may approach "the National Consumers Disputes Redressal Forum, the State Consumers Disputes Redressal Forum or District Consumers Disputes Redressal Forum, as the case may be, for redressal of his relief". This is quoted as printed. Readers should check the current consumer law for the forum that now corresponds; this article names no replacement.
(c) Board declaration. A declaration by the Board of Directors that the financial position of Nidhi as disclosed and the representations made in the application form are true and correct and that Nidhi has complied with all the applicable rules.
(d) No responsibility of the Central Government. A statement that the Central Government does not undertake any responsibility for the financial soundness of Nidhi or for the correctness of any statement, representations or opinions of the Nidhi.
(e) Insurance and backing. A statement that the deposits accepted by Nidhi are not insured and that repayment of deposits is not backed by the Central Government or the Reserve Bank of India.
(f) Depositor's verification. A verification clause by the depositor stating that he had read and understood the financial and other particulars furnished and representations made by Nidhi and that after careful consideration he is making the deposit with Nidhi at his own risk and volition.
Because the Board's declaration in clause (c) states that all applicable rules have been complied with, the Nidhi should check its position against the Rules before the form goes out.
Rule 12(3): introduction of depositors
"Every Nidhi shall obtain proper introduction of new depositors before opening their accounts or accepting their deposits and keep on its record the evidence on which it has relied upon for the purpose of such introduction." The introduction comes before the account is opened or the deposit accepted, and the evidence stays on the Nidhi's record.
Rule 12(4): proof of identity and address
For the purposes of introduction, a Nidhi obtains documentary evidence in the form of proof of identity and address.
| Proof of identity (any one) | Proof of address (any one) |
|---|---|
| Passport | Passport |
| Unique Identification Number | Unique Identification Number |
| Income-tax PAN card | Elector Photo Identity Card |
| Elector Photo Identity Card | Driving licence |
| Driving licence | Ration card |
| Ration card | Telephone bill |
| Bank account statement | |
| Electricity bill |
The documents at telephone bill, bank account statement and electricity bill "shall not be more than two months old". Note that the PAN card appears among identity proofs only, and the three bill-type documents appear among address proofs only.
An example
Neha wants to open a recurring deposit with Seva Nidhi Limited. The form must show the Nidhi's details, the date of declaration as Nidhi, directors' names with DIN, three years of profits and dividends, the interest rate, the rate if she withdraws early, and the latest two years' financial summary. It must carry the six statements, and Neha signs the verification clause. Before opening her account, the Nidhi obtains an introduction and keeps her proof of identity, say her passport, and proof of address, say an electricity bill that is under two months old.
Need help with Nidhi deposit forms?
A deposit form that misses a particular or a statement does not meet rule 12. Our compliance documentation team can check your form against rule 12 and set up the KYC file for each depositor.
Key takeaways
- Every deposit application form carries the particulars in clauses (a) to (m), including (ba), the date of declaration or notification as Nidhi.
- Clause (l) needs a summary of the latest two audited financial statements; (e) and (f) cover three preceding years.
- Six statements are mandatory: Tribunal, consumer forum as printed, Board declaration, no Central Government responsibility, deposits not insured and not backed by the Central Government or the Reserve Bank of India, and the depositor's verification.
- New depositors must be introduced and the evidence kept on record.
- One identity proof and one address proof; telephone bill, bank statement and electricity bill not more than two months old.
Read next
- Rules 13 and 14: deposit periods, interest and term deposits
- Rule 3: definitions
- Nidhi company compliance requirements checklist
- Section 406 of the Companies Act, 2013: Nidhi companies
Disclaimer: Based on the Nidhi Rules, 2014 as notified (G.S.R. 258(E), 31 March 2014) and as amended by G.S.R. 467(E) of 2019, G.S.R. 81(E) and 114(E) of 2020, G.S.R. 301(E) of 2022, G.S.R. 35(E) of 2023 and G.S.R. 413(E) of 2024, as consulted on 3 October 2026. Later amendments, fees, forms and the Companies Act, 2013 provisions referred to should be checked. This article is general information, not legal advice; check the official text before acting.