Nidhi Company Compliance
A Nidhi Company is an NBFC (Non-Banking Financial Company) registered under the Companies Act, 2013. It operates like a small bank, accepting deposits and providing loans only to its members, and does
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What is a Nidhi Company in India?
A Nidhi Company is an NBFC (Non-Banking Financial Company) registered under the Companies Act, 2013. It operates like a small bank, accepting deposits and providing loans only to its members, and does not deal with outsiders. The word "Nidhi" means "treasure" in Hindi, reflecting its role in helping members save and grow their money.
The main objective of a Nidhi Company is to encourage its members to develop a habit of saving regularly and to provide them with affordable loans when needed. It helps members during emergencies by offering easy access to credit at low-interest rates. Nidhi Companies are especially popular in South India, where around 80% of them are based, and they foster financial support within trusted community groups.
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