A Nidhi company is a form of company in India's non-banking finance market, as specified by Section 406 of the Companies Act, 2013. Their primary business is the borrowing and lending of money among their members. Permanent Securities, Income Funds, Mutual Benefit Funds, and Mutual Benefit Corporation are other names for them.
Nidhi Company is not in the market of chit funds, hire-purchase finance, lending finance, insurance, or shares. It is expressly forbidden to take deposits from or lend funds to someone other than members.