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Nidhi Net Owned Funds & 20:1 Deposit Ratio Calculator

Work out your Net Owned Funds, check the deposit-to-NOF ratio and see how much deposit headroom is left under the Nidhi Rules 2014.

Net Owned Funds
₹10,00,000
Deposit ceiling at 20× NOF: ₹2,00,00,000
Minimum NOF ₹10,00,000OK

Your NOF of ₹10,00,000 meets the minimum.

Deposits within 20× NOFOK

Ratio 0.00:1. You can still accept ₹2,00,00,000 of deposits.

Minimum 200 membersOK

Member count meets the rule.

How Net Owned Funds is calculated

NOF = paid-up equity share capital + free reserves − accumulated losses − intangible assets, taken from the latest audited balance sheet. Preference share capital does not count. Because deposits are a liability, taking more deposits never improves the ratio — only capital and retained profit do.

Why the 20:1 ratio matters

Rule 5(1)(d) caps total deposits at twenty times NOF. It is the constraint that usually bites first for a growing Nidhi: deposits rise faster than capital, the ratio drifts up, and the company must either raise share capital or stop taking deposits. Tracking it monthly, rather than discovering it at audit, is the difference between a share issue and a penalty.

Frequently asked

What are Net Owned Funds (NOF) for a Nidhi company?

NOF is paid-up equity share capital plus free reserves, less accumulated losses and intangible assets, as shown by the latest audited balance sheet. Preference share capital is excluded.

What is the minimum Net Owned Funds for a Nidhi company?

Rs 10,00,000 (ten lakh rupees) under the Nidhi Rules 2014, to be met within 120 days of incorporation along with the 200-member requirement.

What is the 20:1 ratio for Nidhi companies?

A Nidhi company may not accept deposits exceeding twenty times its Net Owned Funds. If NOF is Rs 10 lakh, total deposits are capped at Rs 2 crore. Breaching it stops further deposit acceptance until NOF is increased.

How many members must a Nidhi company have?

At least 200 members, and it must not reduce below 200 thereafter. Each member must hold the minimum number of equity shares set out in the rules — commonly ten shares of Rs 10 each.

How do I increase Net Owned Funds?

Issue further equity shares to members, or retain profits so free reserves grow. Deposits are a liability and never count towards NOF.

This calculator is a working aid, not legal or audit advice. Figures should be confirmed against your latest audited balance sheet and the Nidhi Rules 2014 as amended.

Run your whole book, not just the calculator

Byaj Batta handles loan origination, EMI collection, field collection sheets, deposits, accounting and compliance for Indian lenders — NBFCs, Nidhi companies, microfinance institutions and credit co-operatives.

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