Nidhi company

Nidhi company is an NBFC (non-banking finance sector) company recognised under section 406 of the 2013 Companies Act. These companies are to function in accordance with the Nidhi Rules, 2014. They are involved in borrowing and lending money and are regulated by the ministry of corporate affairs. The objective of these companies is to cultivate the habit of saving and thrift. Recently, the centre advised investors to verify the status of these companies before investing.