Difference between a bank and a Nidhi Company
Nidhi company is a non banking finance company that can offers financial services like depositing and lending money. It does not require any license from the Reserve Bank of India. However, Nidhi companies cannot work exactly as the banks do. There are some restrictions on Nidhi companies that make them different from a bank. In this blog we will have a look at these restrictions in detail.
1. Nidhi companies cannot issue any sort of debt instruments such as debentures, preference shares, etc.
2. Nidhi companies can facilitate opening savings accounts, FD and RD accounts, but not the current accounts. The main aim or objective of Nidhi companies is to promote and encourage savings and hence they are not allowed to open current accounts for their members.
3. Nidhi Companies are strictly not allowed to offer any services, such as opening saving deposits or providing loans, to any person who is not the member of that Nidhi company. All the services of Nidhi company are offered only to its members.
4. Nidhi company cannot indulge itself in any other business other than lending and depositing money on its name.
5. Nidhi company is also not eligible to pay brokerage on deposits or making any sorts of advertisements.
So, we can see that a Nidhi company is very much different from a bank on functional front. Hence, you cannot go for any banking software to manage the workflow of your Nidhi company. You will have to get a Nidhi company software that can manage specific processes of a Nidhi company. While getting a Nidhi software, you should also consider Nidhi company software price, along with its features and performance.
Nidhi company software helps you to manage all the process and performs the tasks of RD Software and MIS software at the same time. Nidhi Software helps you to perform various MIS activities such as branch management, loan management, member registration process, information management, generating various complicated reports and a lot more. So, you do not need to buy a separate software for each process. This makes Nidhi company software much useful tool for running and managing a nidhi company effectively. There are various service providers who develop nidhi software, but you should look for the one who offers high quality services in affordable price range. Also, consider the post sales support and maintenance services offered by software company before finalising a Nidhi software.