Govt eases norms

NEW DELHI, MAY 3: The government today modifed the guidelines for Nidhi companies by liberalising the deposit mobilisations and branch network norms. Under the revised guidelines, Nidhis having deposits of Rs 50 crore and above shall be allowed incremental deposits of two per cent per annum of the deposits as on the date of last balance sheet for the next ten years.

These companies having completed 25 years as on November 1, 1999 should not increase the number of branches as it was existing on that date and other Nidhis companies should bring down the number of branches as it was existing on November 1 within a period of ten years from the date of notification, official statement said.

Nidhis companies were earlier asked to shut down their branches situated outside the state in which they are registerd within a period of three years and to bring down the number of branches situated within the state or district in which they are registered to not more than three by five years.

In case of retirement of two third of directors, or more in any one year, then one third of the total number of directors shall vacate office in the ensuing annual general meeting immediately due and balance number of directors shall retire at the two subsquent AGMs due later, it said.