Community Savings & Lending — A Members-Only Financial Cooperative
Get StartedA Nidhi Company is a type of Non-Banking Financial Company (NBFC) that operates exclusively for the benefit of its members — accepting deposits from members and lending to members for mutual benefit. Governed by the Nidhi Rules, 2014 and Section 406 of the Companies Act, 2013, Nidhi Companies operate on the principle of thrift and savings among members, similar to a cooperative but in company form.
A Nidhi Company does not need an RBI licence (unlike other NBFCs) as long as it deals only with its members. Within 1 year of incorporation, a Nidhi must have at least 200 members, net owned funds of ₹10 lakh, and maintain an unencumbered deposit ratio of at least 1:20 (for every ₹20 in deposits, maintain ₹1 in liquid assets). The MCA has tightened Nidhi rules since 2022 — it is critical to comply from Day 1.
Nidhi Companies are popular in Tamil Nadu, Karnataka, and other southern states as a community savings mechanism. They are an alternative to chit funds — legally recognised and better regulated.
Ideal for: Community groups, localised financial cooperatives
✓ Company name with "Nidhi Limited"
✓ MOA + AOA (Nidhi-compliant)
✓ SPICe+ filing
✓ COI +
PAN
✓ Nidhi Rules compliance advisory
VITTAX Fee: ₹10,999 | Govt. Fees: MCA fees + stamp duty at actuals (~₹3,000–5,000)
A: No — a Nidhi Company can ONLY accept deposits from and lend to its registered members. Accepting deposits from the public (non-members) is a violation of Nidhi Rules and NBFC regulations and attracts severe penalties.
A: The company must apply to the Regional Director (MCA) for extension. Failure to meet membership and fund criteria can result in cancellation of Nidhi status and conversion to a regular NBFC requiring RBI licence.