Nidhi, Producer, NBFC (NGO Companies)

The word Nidhi in the Indian language means TREASURE. The company which is incorporated as a Nidhi with the object of Cultivating the habit of thrift and savings amongst its members is known as Nidhi company. Besides, receiving deposits from and lending to, its members only for their mutual benefits and which complies. However, according to the Indian financial sector, it refers to a mutual benefit society notified by the Central/ Union Government as a Nidhi company. If a company is carrying on Nidhi business such as borrowing from members and lending to members only, are known under different names like Nidhi, Permanent Fund, Benefits Funds, Mutual Benefits Funds and Mutual Benefits Company.

Requirements and regulation for Nidhi Company


  • Any Nidhi company incorporated under this act will be considered as a public company.
  • It is mandatory to have a minimum paid up equity share capital of Rs. 5 lakhs.
  • There will be no preference shares that would be issued.
  • If in case, the preference shares already issued then that will be redeemed as per the terms.
  • The objective of Nidhi company registration shall be cultivating the habit of thrift and savings amongst its members and as described above.
  • It has a name with the words ‘Nidhi Limited’ as its part.

Non-Banking Financial Companies (NBFCs)

While understanding the basic idea of a Non-Banking Financial Companies (NBFCs), we need to know what exactly NBFCs are. As per law, A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares / stocks / bonds / debentures / securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property. In lay man language Non-Banking Financial Companies (NBFCs) are the financial institutions that offer the banking services but does not comply with the legal definition of a bank, i.e. it does not hold a bank license.