What is Nidhi Limited?
Nidhi Limited is a registered company under Companies Act 2013 and is explained under Nidhi Rule 2014 under section 406 of Companies Act. It is precisely a financial institution and not a bank. This is created with a sole purpose of lending and borrowing money from its shareholders and members. It’s not opens to all. Only members can transact in Nidhi. They can avail financial services like Recurring Deposits, Fixed Deposits, Loans and Pigmy scheme. The sole purpose of Nidhi is to cultivate a habit of savings amongst its members and help its members with loans from that collected money, thus generating a kind of mutual benefit for its members. The Nidi is regulated by the rules defined by Central Government under such class of companies. The loans provided to members are secure loans and are provided at reasonable rates to help the members.
How Blockchain is going to benefit Nidhi Limited?
Blockchain is an advance technology which have automated the transaction function that banks follow. Its so secure if defined under correct legislative of codes that no one can barge it intentionally or unintentionally. It helps avoid double spending which usually done by entry of each transaction into the ledger of sender and receiver. This way the sender of the digital currency cannot spend it at more than one destination. This helps removing the transaction fee which is the basic business model of the banks where they charge you fee for each transaction that they process. The only catch is the quality of Blockchain based application that Nidhi is going to use should be of high quality to secure the rights of its consumers. However, Blockchain is a complex technology which is not that old and hence the development cost could be high. Other than this, the technology is not yet scaled by corporates so such extent that people could afford to buy its application.
How Artificial Intelligence is going to benefit Nidhi Limited?
Artificial Intelligence is another technology which helps the system think and perceive data like humans do. We do not require to process the data once the code is automated using Artificial Intelligence. This can help Nidhi to expand its services by providing a good financial insight to its users. Also, help Nidhi to expand its product base and customer base looking for like minded people and invest into other business opportunities. Artificial Intelligence can help automate the credit analysis as well and help them optimize their loan products and their rates to help the members in complete capacity.
Artificial Intelligence and Blockchain are new and complex technologies. People are still trying to discover it and use it in various processes and domains. Various use cases are developed around it which can benefit the industries. However, this can also be a threat to many legacy jobs where one would require less manpower to deploy the services. Also, not many governments and legislative systems are supporting its implementation. Hence though we can think of all the possibilities, but its complete adoption will take time.