Publicly available, detailed documentation (in the sources I checked) of a fixed deposit or term deposit scheme offered by MSNL with clear terms (interest rate, tenure, withdrawal rules, regulatory protections).
As a Nidhi company, there are specific legal/regulatory frameworks: Nidhi companies are regulated by the Ministry of Corporate Affairs in India and their deposit/loan activities must comply with the Companies (Nidhi Companies) Rules, 2014.
Nidhi companies are not the same as banks. They may collect deposits from members, but they are not covered under deposit insurance (like the Deposit Insurance and Credit Guarantee Corporation for banks) unless explicitly stated and regulated.
Given its fairly recent incorporation (2021)
The “Sub Banking” tag may give the impression of bank-like services; you’ll want to check exactly what “sub banking” means here: is it a tie-up with a bank, or just a service point Fixed deposit” with MSNL
If you are considering doing a “fixed deposit” or term deposit with this entity, make sure you get answers in writing (and ideally check regulatory standing) for the following:
1. Scheme terms: Interest rate, tenure, compounding frequency, premature withdrawal rules, whether interest is locked, what happens if they default.
2. Depositor protection: Since it’s a Nidhi company, confirm what protections you have in case of default, insolvency. Banks have better protections under law.
3. Regulatory compliance: Does MSNL have the necessary approvals/licences for accepting deposits? Are they registered with the proper regulator for deposit taking?
4. Membership status: Nidhi companies typically require you to become a member of the company to deposit. Ensure you understand membership terms: any required shares, membership fee etc.
5. Financial health: Given its recent start and small capital base, check recent balance sheets to assess risk.
6. Transparency: Ensure you receive a written deposit receipt/scheme document, with name of company, amount, tenure, interest rate, maturity date, and any other conditions.
7. Exit & maturity: Are you free to withdraw on maturity? Are there penalties? Who is the guarantor in case of delay.
8. Audit/filings: Check that MSNL is up-to-date with filings (AGM, financials) and there are no regulatory actions or warnings against it.
Given the above, if you’re looking for a safe and conventional fixed deposit, you might consider doing it with a bank or a well-regulated non-bank deposit scheme with insurance/guarantee. If you still go ahead with MSNL:
Treat it as a higher-risk deposit compared to a bank FD.
Only deposit an amount you are comfortable with possibly being exposed.
Ensure you get everything in writing and keep the documentation safe.