Nidhi refers to any mutual benefit society notified by the Central Govt as a Nidhi Company. They are created mainly for cultivating the habit of thrift and savings amongst its members.

•The companies doing Nidhi business (borrowing from members and lending to members only), are known under different names such as Nidhi, Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company.

Nidhis are companies registered under the Companies Act and are regulated by Ministry of Corporate Affairs (MCA).

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