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What is a Nidhi Company and How Does it Work?
A Nidhi company is a type of mutual benefit society that operates in the form of a non-banking financial company (NBFC). It is regulated by the Ministry of Corporate Affairs (MCA) and governed by the Nidhi Rules, 2014. The main objective of a Nidhi company is to foster the habit of thrift and savings among its members and provide them with financial assistance when needed.
A Nidhi Company is a unique type of non-banking financial institution (NBFC) in India that focuses on cultivating savings and mutual benefits among its members. It operates based on the concept of mutual fund pooling, which has deep roots in Indian tradition.
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