What are NIDHI Companies?​

Nidhi Company is the part of Non-Banking Financial Company (NBFC) and they don’t need any Reserve Bank of India (RBI) license. Nidhi Company works with its members as they accept deposits and give loans to its members. Nidhi means ‘treasure’ In the financial sector. Some of NIDHIs’ features are as follows –

  • Nidhi companies are registered under company act 1956.
  • Nidhi companies are regulated by MCA also known as Ministry of corporate affairs.
  • Only individuals are eligible to be a part of NIDHIs as per membership rules. No firms or companies are permitted.

Nidhi Companies are also known as Mutual Benefit companies. They allow  the saving and utilization of money within its community members.