As per sub-section (1) of section 620A of the Act, ‘Nidhi” or ‘Mutual Benefit Society’ means a company which the Central Government may, by notification in the Official Gazette, declare to be a Nidhi or Mutual Benefit Society, as the case maybe. Thus, for an association or a body corporate to beocme a ‘Nidhi’ or a ‘Mutual Benefit Society’, the following conditions laid down by section 620A of the Act must be fulfilled:
  • It must be a company as defined under section 3 of the Act.
  • It must be declared to be a ‘Nidhi” or ‘Mutual Benefit Society’ by a notification in the Official Gazette by the Central Government.