“Nidhi” is a Hindi word, which implies finance or fund. Nidhi Company Registration is completed to cultivate savings among members and to supply finance among members only. it’s allowed to require loans from members and may lend to only members. Hence, it can’t accept deposits or lend from/to non-members.
Though there are not any separate registrations to be done under RBI for a Nidhi company, RBI is empowered to issue any directives to them. Nidhi Companies are intrinsically exempted from main provisions otherwise applicable to an NBFC in India. It needs a least of 7 members and 3 directors, to begin with. As a part of the suffix, all such companies must include “Nidhi Limited” following its name. Nidhi Company is extremely easy to make and there are minimum compliances afterward