Nidhi Company

A Nidhi Company is a type of Non-Banking Financial Company (NBFC) in India specifically designed to foster the habit of thrift and savings among its members. Its core business is borrowing and lending money exclusively among its members for their mutual benefit. Unlike other NBFCs, Nidhi Companies are largely exempted from the stringent regulations of the Reserve Bank of India (RBI) and are primarily governed by the Ministry of Corporate Affairs (MCA) under the Companies Act, 2013, and Nidhi Rules, 2014. To qualify, they must have a minimum of 200 members within one year of incorporation and maintain a specific ratio of net owned funds to deposits. They cannot deal with non-members, nor can they engage in activities like chit funds, leasing, or hire purchase businesses.