What restrictions have been introduced concerning the use of the term "Nidhi Limited" in a company's name under the Nidhi (Amendment) Rules, 2024?

The Nidhi (Amendment) Rules, 2024* (MCA Notification No. G.S.R. 413(E) Notified on July 16, 2024) In exercise of the powers conferred by sub-section (1) of section 406 read with subsections (1) and (2) of section 469 of the Companies Act, 2013 the Central Government notified the Nidhi (Amendment) Rules, 2024 According to the Amended Rules in the Nidhi Rules, 2014, in rule 4, in sub-rule (5,) the following proviso shall be inserted, namely: "Provided that a company shall not use the words "Nidhi Limited" in its name unless it is declared as such under sub-section (1) of section 406 of the Act." Thus, A Company shall not use the words "Nidhi Limited unless it is declared by the Central Government by notification in the Official Gazette as declared to be a Nidhi or Mutual Benefit Society, as the case may be.