Cibil registration

This query is : Resolved 

(Querist) 23 July 2013

Do Nidhi Companies are eligible for having membership in CIBIL.

RAMESH KUMAR VERMA (Expert) 23 July 2013

Nithish Engoor (Querist) 23 July 2013

Sir, i just gone through this link provided by you but its no am asking. We have to register our Company with CIBIL for availing their services. We had conversation wuth representative of CIBIL over telephone he formally reject the application saying that your Company has not registered with RBI actually nidhi Companies are specifically exempted under Sec45IA of RBI Act 1934, And in the Credit Information Companies Act 2005 it says every credit institution is eligible for registration. I dont know what to do now.

RAMESH KUMAR VERMA (Expert) 23 July 2013

Nidhi Company is a company registered under Companies Act and notified as a Nidhi Company by Central Government under Section 620-A of Companies Act. It is a non-banking finance company doing the business of lending and borrowing with its members or shareholders.

Nidhi is a company formed with the exclusive object of cultivating the habit of thrift, savings and functioning for the mutual benefit of members by receiving deposits only from individuals enrolled as members and by lending only to individuals, also enrolled as members, and which functions as per Notification and Guidelines prescribed by the DCA. The word Nidhi shall not form part of the name of any company, firm or individual engaged in borrowing and lending money without incorporation by DCA and such contravention will attract penal action

First you have to register your company under the Companies Act, 1956. Then you have to get approval from Registrar of Chits for Chits company incorporation. For NBFC you have to get prior approval from RBI to commence business.


Nithish Engoor (Querist) 23 July 2013

Our company is notified Nidhi Company u/s 620A of the Companies Act we are complying all the rules & regulations etc. Most of them are in GSR 555E 2001 notifications issued by DCA and also amended two three times. Also RBI exempted nidhi companies complying with certain sections. But I think there is no valid reason for rejecting us for becoming a member in CIBIL.

RAMESH KUMAR VERMA (Expert) 24 July 2013

OPTION IS FOR YOU ask query through RTI ACT, 2005.


Nithish Engoor (Querist) 24 July 2013

Thank you Sir, I will resort RTI Act.

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