Nidhi Company

Nidhi Company comes under the group of Non-Banking Financial Company (NBFC) which does not require obtaining a license from the Reserve Bank of India, but RBI has the right to interfere in their deposit acceptance activities.The sole objective of this company is to encourage the custom of frugality and savings among its members.

Unlike other companies, this company deals with deposit from and lending to its member only, and work for the mutual benefits of its member, which complies with rules of Chapter XXVI of Companies Rules, 2014.Nidhi Company is also known as Permanent Fund, Benefit Funds, Mutual Benefit Funds, and Mutual Benefit Company that are more popular in South India and 80% of Nidhi companies are situated in Tamil Nadu.

There are various benefits associated with Nidhi Company. Some are listed below:-

Simple Registration Process

• Micro Banking

• Liability is Limited

• Less Regulations

• Better Credibility

• Better Option for Savings

• Easy Access of Public Funds


• Ease of Fund

• Micro Banking

• Better Credit Co-operative Society

• Single Regulatory Body

• No External Involvement:

• Easier Eligible

• Separate Entity

Nidhi Company