Nidhi Company

Nidhi companies are registered under the Companies Act 2013, with the exclusive object of cultivating the habit of thrift, savings and functioning for the mutual benefit of members by receiving deposits only from individuals enrolled as members and by lending only to individuals, also enrolled as members. Nidhi Companies come under one class of NBFCs, RBI is empowered to issue directions to them in matters relating to their deposit acceptance activities. However, in recognition of the fact that these Nidhi's deal with their shareholder-members only, RBI has exempted the notified Nidhi's from the core provisions of the RBI Act and other directions applicable to NBFCs. Nidhi Company is an ideal entity to take deposit from and lend to a specific group of people.

Nidhi company should have minimum of two hundred members within a period of one year from the date of commencement. Net owned funds shall be ten lakhs and ratio of net owned funds to deposit shall be not more than 1:20. A Nidhi shall not close any branch unless it publishes an advertisement in a newspaper in vernacular language in the place where it carries on business at least 30 days prior to such closure.