Recurring Deposit

• The company shall not repay any deposit within three months from the date of its acceptance.
• If at the request of the depositor, the deposit is repaid after three months but before maturity, the depositor shall not be entitled to any interest for up to six months from the date of deposit.
• If repaid before the expiry of the accepted tenure, the rate of interest shall be reduced by two per cent from what would have ordinarily been paid.
• Eligibility / disclosures: The Nidhi must obtain proper proof of identity & address for depositors.
• Deposits are not insured and repayment is not guaranteed by the Government or RBI.
• The term of the recurring deposit they offer (does it conform to the 12–60 statements).

The formal terms & conditions document of the deposit product: is it consistent with the Nidhi Rules and transparent about the risks?

• The minimum tenure you should expect is 12 months; maximum typically 60 months.
• Early withdrawal may mean: no interest for some period + reduced rate.
• Deposits in a Nidhi are not government/RBI-insured — you bear risk.