The completion of 100 years of sustained growth of any Institution is by itself an important landmark in its service, and if the Institution has been serving the financial needs of the people in the middle class and lower-middle class, everyone connected with it can justly be proud.  One such Institution which has passed the milestone of 100 years and is marching forward is The N.S.D.R. Nidhi Ltd.

At the outset it may be appropriate to outline the formation and development of Nidhis.  Nidhis are one of the oldest non-banking financial Institutions in the Country, peculiar to Tamil Nadu (though there are a few of them in the neighbouring States of Andhra Pradesh, Karnataka and Kerala).  The important factor which pave the way for the formation of the first Nidhi was the usurious rates of interest-charged by money-lenders.  The earliest Nidhi, known as “The Scudder Court Fund” was started in Madras in or about 1858, to make loans available to officials in Madras at reasonable rates of interest.  This fund was of a terminating character.  At the end of the 84th month, the Fund terminated.  Each member paid one rupee a month for 84 months and in the 85th month, the member received 102½ for Rs. 84 subscribed.  From the subscriptions received, the Fund sanctioned loans to its member at 6¼% interest with penalties for delay.  Clerical expenses were met from out of the interest. Later, many such Nidhis sprang up and they were required to register under the Indian Companies Act, 1866.  As this new Act was not known to a large section of people, most of the Nidhis were not registered under this Act and hence were declared illegal.  As a result, many of the Nidhis had to be liquidated.  The collapse of unsound Nidhis gave birth to more efficient ones.

As on date there are about 75 such Institutions in Madras City alone.  These Nidhis are a real boon to the poor and middle class people for borrowing money in times of need at reasonable rates of interest on the mortgage of movable and immovable assets.

Quite a few of the Nidhis now functioning have completed over 100 years of service and our Nidhi viz.  The N.S.D.R. Nidhi, started in 1883, is one of them

These Nidhis are now governed by the Companies Act, 2013 (406).  As they exhibit some peculiar features, they are exempted from provisions of the Companies Act, under Section 620-A of the Act.

For the same reason, the Tamil Nadu Government have also exempted Nidhi from certain sections of some special Acts enacted by them such as the Pawn-Brokers Act and various Debt Relief Acts.

The Government have been appointing Committees, and commissions from time to time, the more important of which were in 1892, headed by Mr. Fredrick Angustis Nickelson and in 1929 by Mr. H.M. Hood, I.C.S. As a result of their finding, Nidhis, as they are functioning now, came into existence.

The N.S.D.R. Nidhi was founded on 10-1-1883 by a band of selfless workers with the very laudable object of enabling its members to save money, to invest their-savings, to secure loans at favourable rates of interest and to inculcate the idea of thrift and compulsory savings in the minds of the poor and middle class people.  The founding fathers of this Institution, a list of whom is given elsewhere, were all residents of Nungambakkam which was then a small village.  The Nidhi had its very humble beginning housed in the residence of one of the founders in Kumarappa Mudali Street.  It was shifted later to rented rooms till 1933, when it moved into its own building.  The first floor to this building  was added in 1956.  Necessary additions to the furniture, fittings, etc., to the building were added from time to time and today it has a good well-protected strong room ad a big hall.

The office accommodation having become insufficient with the growth of business and consequent increase in the strength of staff, an adjacent building was-bought in 1983.  The work of remodeling the two adjacent buildings belonging to the Nidhi to suit the present needs was taken on hand in 1985 and has been completed in June’87.