MCA cautions public on Nidhi companies promising high returns; only 395 are declared Nidhis
MCA says many companies working as Nidhis have not filed Form NDH-4 in time or are not complying fully. Deposits in Nidhi companies are not insured by DICGC.
Key facts
- Published
- 24 September 2026
- Section
- Company Law
- What it is
- Clarified
- Who it affects
- Nidhi companies and their members
In 30 seconds
- Every company wanting to function as a Nidhi must file Form NDH-4 to get itself declared/updated as a Nidhi.
- MCA found many companies had not filed NDH-4 within the prescribed time or were not fully compliant.
- Deposits accepted by Nidhi companies are NOT insured by DICGC.
- A list of 395 companies declared as Nidhis is on the MCA website.
हिंदी में सार
MCA ने ऊँचे रिटर्न का वादा करने वाली निधि कंपनियों से सावधान रहने को कहा है। निधि के रूप में काम करने के लिए Form NDH-4 भरना ज़रूरी है, और अब तक सिर्फ 395 कंपनियाँ निधि घोषित हैं। निधि कंपनियों में जमा रकम DICGC से बीमित नहीं है।
Why the advisory was issued
While examining NDH-4 applications, the Ministry noticed that many Nidhi companies are not complying fully with the Companies Act and the rules, and that many companies functioning as Nidhis have not submitted their NDH-4 application within the time prescribed under the Nidhi Rules. It has also come to notice that many companies lure members by promising unusually high returns.
What the public is told
- Do not rely only on promises of unusually high returns by agents or on informal assurances.
- Independently verify whether the company has been declared as a Nidhi by the Central Government.
- Deposits in Nidhi companies are not insured by the Deposit Insurance and Credit Guarantee Corporation. If the company fails or faces fraud, recovery can be very difficult or incomplete.
The legal position, as the release puts it
Nidhi companies are mutual-benefit companies regulated by MCA under the Companies Act, 2013 and the Nidhi Rules, 2014; they can accept deposits from and lend only to their members. Section 406 and the Nidhi Rules were amended with effect from 15 August 2019, bringing back the need for declaration of a company as a Nidhi by the Central Government.
The list of 395 declared Nidhis, published on the MCA portal on 3 November 2025, is available on the MCA website.
Questions and answers
Is money deposited in a Nidhi company insured?
No. The MCA advisory says deposits accepted by Nidhi companies are not insured by DICGC.
How do I check whether a company is a declared Nidhi?
MCA has placed a list of 395 companies declared as Nidhis on its website; check the company against that list.
Which form does a Nidhi have to file?
Form NDH-4, for getting itself declared or updated as a Nidhi.
Published 24 September 2026. Updated 2 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.