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Legal TalksIndia
Glossary · Indian business compliance

What is Nidhi Company?

(Nidhi Company)

In plain English

A members-only deposit-and-lending company under Section 406 of the Companies Act — RBI-exempt.

Why it matters

Lets you take deposits and lend to members without an NBFC licence — but you can't deal with non-members at all.

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Services that involve Nidhi Company

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