NIDHI Company Registration - Nidhi Company Registration Online Process

National Initiative For Developing and Harnessing Innovations (NIDHI) is a financial institution or NBFC that involves deposits and money lending to its members. Moreover, NIDHI company is registered under the Companies Act, 2013, and is governed according to the guidelines of the Reserve Bank of India (RBI).

However, as NIDHI company deals with its shareholders only, RBI has exempted notify NIDHI company from core RBI Acts, and other directions apply on NBFC.

In simpler words, NIDHI is the company that is incorporated with the motive of cultivating the habit of thrift, saving among its members, receiving deposits from members, and lending money to its members for their mutual benefit.

The Ministry of Corporate Affairs regulates the NIDHI company or Nidhi company registration. Though the Company Act provisions regulate NIDHI companies, they are exempted from specific Act provisions applicable to other companies.

NBFC included NIDHI company in its definition, which works fundamentally in the unorganized money market. But, on the contrary, since 1997, NBFCs are majorly regulated by RBI.