A Company is a type of non-banking financial company (NBFC) in India, formed with the primary objective of encouraging savings and thrift among its members. It operates on the principle of mutual benefit, meaning it accepts deposits from and lends money to its members only.
Registered under Section 406 of the Companies Act, 2013, and governed by the Nidhi Rules, 2014, a Nidhi Company functions like a community-based finance institution. Its main aim is to provide its members with easy access to credit and to promote a habit of saving within a trusted group.
A company is a non-banking financial institution licensed to receive deposits, offer loans, and provide a variety of other financial services to individuals, businesses, and governments.
Company play a central role in the economic system by facilitating financial transactions, safeguarding
money, offering credit, and helping manage risk.
Modern company also offer digital banking platforms, enabling customers to conduct transactions online
or via mobile apps. It is regulated to ensure financial stability, prevent fraud, and protect customer
deposits.
A Company operates on the principle of mutual benefit among its members. Its methodology focuses on encouraging savings habits and providing easy credit within a community of registered members. The company does not deal with the general public and functions within a tightly regulated framework.
The methodology of a Company is based on self-help and mutual support among members. It promotes financial discipline through savings and offers easy access to credit in a regulated, community-based environment.
To successfully operate and meet its objectives, a Nidhi Company utilizes various methodology tools - including systems, software, processes, and frameworks - that ensure smooth, compliant, and member-focused financial services.
Methodology materials are essential tools and documents that support the functioning, compliance, and governance of a Nidhi Company. These materials ensure transparency, accuracy, legal compliance, and smooth operations.
Refers to the step-by-step operational framework that a Nidhi Company follows - from formation to day-to-day functioning, deposit-taking, lending, and compliance activities. This process ensures the company runs in a legal, efficient, and member-focused manner.
Involves the practical execution of operational, financial, and regulatory processes to meet its core objectives: encouraging member savings, providing credit, and maintaining mutual benefit - all while staying compliant with legal frameworks.
A Company is a member-based mutual benefit institution that accepts deposits and provides loans only to its members. Its main goal is to promote savings and financial self-reliance, especially in smaller communities.
A Company, when managed well, offers a low-risk, community centric financial model that promotes thrift and credit access. It thrives on trust, transparency, and legal compliance. While growth is limited by regulatory constraints, its potential impact on grassroots financial empowerment is significant.
A Company serves as a powerful community-based financial institution that promotes the values of savings, self-reliance, and mutual benefit among its members. Operating under the framework of the Companies Act, 2013 and Nidhi Rules, 2014, it provides a safe, accessible, and affordable alternative to conventional banking, especially for individuals in rural and semi-urban areas.
By collecting deposits and providing secured loans exclusively to its members, a Nidhi Company creates a closed-loop financial system that fosters trust, discipline, and social responsibility. Its low-risk, low-cost structure makes it ideal for promoting financial inclusion while maintaining regulatory compliance with minimal complexity.
A Company, when implemented and managed effectively, becomes a self-sustaining, people-driven financial institution that empowers its members, strengthens local economies, and contributes to the broader goal of inclusive financial development in India.