Nidhi itself means ‘Treasure’ which is a type of company that has been assimilated as a Nidhi with the target of nurturing the habit of thrift and savings among its members. In this type of Company, deposits are received i.e. borrowed, and are even lent to the respective member as required to reap mutual benefits. Nidhi Company complies with the rules of Chapter XXVI of Companies Rules, 2014.
In other words, the Nidhi Company can be referred to as a ‘Mutual Benefit Society’ which is notified by the Union or Central Government in our Indian Financial Sector.
