Nidhi Company Registration is one of the category of Non Banking Financial Company (NBFC) which does not require any Reserve Bank of India (RBI) license. Nidhi Company works through its members. It can accept deposits and lends loans to its members only.They are also known as Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company.
Nidhi companies were existed even prior to the existence of companies Act 1913. The basic concept of nidhi is “Principle of Mutuality” (“Paraspara Sahayata”). Thus they function for the common benefit advantage of all their members/share holders.Such companies is governed by Nidhi Rules, 2014.
No RBI approval is necessary to register the company, as RBI has specifically exempted this category of NBFC in India to comply with its core provisions such as registration with RBI etc.