NIDHI COMPANY
Nidhi Companies in India are created for cultivating the habit of thrift and savings amongst its members. Nidhi companies are allowed to borrow from their members and lend to their members. Therefore, the funds contributed to a Nidhi company are only from its members (shareholders). Nidhi companies are minute when compared to the banking sector and are mainly used to cultivate a saving amongst a group of people.
NON-FINANCIAL BANKING COMPANIES
A non-Banking Financial Company (NBFC) is a company registered under the Companies Act, of 1956 involved in the principal business of lending, investments in shares/stocks/bonds/debentures, leasing, hire-purchase, insurance business, chit business or involved in the receiving of deposits under any scheme of arrangement. NBFC is under the purview of the Reserve Bank of India (RBI) and in this article, we visit the procedure for NBFC Registration in India and some of the regulations which govern its operations.