Nidhi Company, is the one of non banking Indian Financing

Nidhi Company, is the one of non banking Indian Financing sector and recognized under area 620A of the Companies Act, 1956. Their main business is lending and obtaining money just between their members. The business doing Nidhi business, viz. obtaining from members and lending to members just, are known under different names such as Nidhi, Permanent Fund, Advantage Funds, Mutual Benefit Funds and Mutual Benefit Companies. A nidhi company registration barely takes one to 2 months time.
You can do monetary business like nidhi company deposits from members in kind of repaired deposit, recurring deposit, open savings accounts of members and distribute loans to members(individual, appropriately, home mortgage, jewellery, gold, car etc.) Nidhis are more popular in South India and are extremely localized single office institutions.They are mutual benefit societies, due to the fact that their transactions are restricted only to the members; and membership is restricted to people. The principal source of funds is contribution from the members. A nidhi company is expected to perform all its plans and strategies as per the guidelines of RBI. It can not carry out any strategy either loan or deposit of more than 5 years. The loans are given to the members at fairly sensible rates for functions such as house building and construction or repair works and are generally secured. When compared to the organized banking sector, the deposits mobilized by Nidhis are not much. Nidhi in the Indian context indicates "treasure". In the Indian sector, it refers to any mutual benefit society notified by the Central Government as a Nidhi Company. They are developed primarily for promoting the routine of thrift and cost savings amongst its members. A nidhi company is expected making 200 members in the first fiscal year. In case if it is unable to do so, it has to look for authorization from registrar of business for granting extension making 200 members. A nidhi company is expected to keep 10 percent of total deposits gathered in each month as repaired deposit in any nationalized bank. A nidhi company can just close its branch if it has actually released an ad in newspaper in vernacular language in the location where it continues company a minimum of 1 Month prior to such closure, informing the general public about such closure. The repaired deposit strategies carried out by the mutual benefit company or a nidhi company shall be for a minimum duration of 6 months and maximum period of sixty months. In case of repeating deposits, it shall be for a minimum duration of 12 months and optimal duration of sixty months.