The DCA has notified that no nidhi or mutual benefit society will be allowed to enter into any arrangement for change of management without the approval of DCA/RBI. Also, no nidhi can enter into any arrangement in the change of management without approval of the shareholders by a special resolution.Nidhis having branches outside the state in which they are registered will be given three years time to shut down their branches outside the state.

Further, nidhis having more than three branches in the state or within the district will be given five year's time to bring them down to the ceiling of three branches over and above the registered headquarters.

The revised norms says that all nidhi companies will have a deposit cap of Rs 20 crore and once this limit is crossed a nidhi will become a non-banking finance company. Nidhi companies having a deposit of over Rs 20 crore (upto November 1) will also not be allowed to increase the deposit beyond this limit.

The notification also says that no nidhi will be allowed to accept deposit for a period of less than six months. Nidhis will not be allowed to give loans to its directors beyond Rs 15 lakh. If loans are given to directors beyond this limit they would be bound to bring it down to Rs 15 lakh within a period of one year.

Each nidhi will be required to maintain a contingency fund which will be built up by transferring 0.5 per cent of each deposit to this fund which will be kept in deposit form with a nationalised bank.

Further, if auditors are found giving vague certificate relating to companies with DCA norms/regulations, the department of companies will be authorised to order a special audit and take suitable action against the auditors.