A type of NBFC formed to cultivate the habit of savings among members and lend money only to its own members, regulated under Section 406 of the Companies Act.
Groups wanting to run a member-only mutual benefit savings and lending institution at a local/community level.
Ministry of Corporate Affairs (MCA), Companies Act 2013 & Nidhi Rules 2014
PAN & Aadhaar of all members/promoters (minimum 7 members, 3 directors); ID proof (Voter ID/Driving Licence/Passport); address proof (utility bill/bank statement within 2 months); passport photos; registered office proof; MOA & AOA; DSC & DIN.
Generally a minimum equity capital of Rs. 5 lakh, with net owned funds of Rs. 10 lakh required within the first year.
At least 7 members, of whom 3 must be directors.