Nidhi Company
Nidhi Company is a certain category of NBFC. Though not directly regulated by the RBI, it still has the power to issue directives for them related to their deposit acceptance activities. Moreover, because these "Nidhis" deal with their shareholder-members only, they have been exempted from the core provisions of the RBI Act and other directions applicable to NBFCs. Therefore, Nidhi Company is an ideal legal entity to take a deposit from and lend money to a specific group of people.
Requirements for a Nidhi Company Incorporation
Minimum number of shareholders or members: 7
Minimum number of directors: 3
The required minimum capital is Rs. 5 lakhs.
DIN for Directors
minimum of three directors.
No preference shares shall be issued.
The objective of the company shall be to cultivate the habit of saving by "receiving deposits" from and "lending to" its members only for their mutual benefit.