Nidhi company is basically formed by members to function as self banking among them. In this company members mutually agree among them to contribute a sum of money. Eventually these money will be given to a needy member in the form of loan with interest on it.
No,approval of RD is required first, except no branch can be opened outside registered office state, 3 Branches can be opened, if it has 3 Years Track Record of PAT, else approval of RD is required Refer R. 10 of Nidhi rules
Yes ,Without the approval of RD no branch can be opened outside the district where RO is there,Now if query is in relation to the acceptance of deposit from person from one who is outside the district ,even state and visit the RO of Nidhi company to make deposit then I think it's allowed ,restriction is on Opening of Branch and It's Numbers,Just Like Nidhi Registered in Mumbai ,can't open branch In Pune without specific approval from RD,but anyone who is from Pune and visit to Mumbai and wishes to be member of That NIDHI and do time deposit ,then generally it's not prohibited .So Branch office is in relation to extending operations at particular locality ....More interpretation and views are required on it ...thnx
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