Role of Nidhi Company Software in Nidhi Companies

Role of Nidhi Company Software in Nidhi Companies
4 min read

Introduction

We very well know what Nidhi Company is and for those who do not have any idea about it let Us quickly describe what Nidhi Company is. Nidhi Company is a company who core business is borrowing and lending money between their members. It comes under the Indian non-banking finance sector, recognized under section of the companies act, 2013. It is known by many other names like permanent fund, mutual benefit funds, mutual benefit company, quasi bank etc. 

Rules and Regulation

They are regulated by ministry of corporate affairs, who have the power of issuing guidelines or direction in matters regarding their deposit and acceptance activities. Nidhi companies have one unique feature that all transaction takes place between their members only, so they are allowed to take deposit from their members only and they can provide loans to them only. Objective of incorporating Nidhi Company is to develop the habit of savings among its members. They work according to Nidhi rules 2014. Also being public limited company they have to comply with two set of norms, one is public limited company as per companies act, 2013 and another is for Nidhi rules 2014 as we have stated earlier as well. 

Role Of RBI 

Although no RBI approval is necessary to register Nidhi Company but Ministry of corporate affairs exercise their power to issue guidelines regarding deposit and acceptance activities through RBI only. 

Nidhi Software

As far as managing affairs in a Nidhi company, Nidhi Company Software is used by most of the Nidhi companies as it is very efficient software which manages almost entire operations quit easily.

Role Of Nidhi Company Software

Nidhi company software is cloud software used to manage a Nidhi company. Nidhi CBS software plays a very crucial role in Nidhi companies. 

Nidhi company software performs various roles; let us quickly look at few main roles performed by it.

  1. Membership Management: Nidhi company software lets customer enrol themselves as member, non-member, associate member and nominal member. Process of enrolment is pretty simple through Nidhi company software.
  2. Member Management: Nidhi CBS software is manages all kind of member management activity and since it’s objective is t cultivate habit of savings among it’s members so it keeps a close eye on each and members activity as well.
  3. Share Management: Nidhi company software very well performs share management that too with ease.
  4. Loan Management: Nidhi CBS software manages all kind of loan related activities , Nidhi company software is very much capable of managing different types of loans like business loan , personal loan , unsecured loan , secured loan , gold loan ,vehicle loan ,group loan ,loan on deposits in Nidhi company.
  5. Account Management: It is one of the important roles that Nidhi CBS software performs. Managing accounts in any financial institution is a very stressful job but with Nidhi company software it is done quite easily and in an efficient manner , also chances of error is minimised when you use Nidhi software. All sort of accounts like General ledger , Journal voucher entry , cash book , Day book , Bank Book, Profit and loss A/C etc. are managed

Apart from these main roles Nidhi company software performs many other roles which are listed below:-

  • It prepares annual reports.
  • Stores all the data in the data base which is accessible when required.
  • Manages member profile queries.

Not only prepares reports but exports them in to various useful formats. 

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