Does Nidhi Company require Reserve Bank of India (RBI) approval to register in India?
by Paras Mehra 12.4K
No, Nidhi Company does not require any RBI approval for its registration in India. Nidhi Company is one of the categories of NBFC which has been specifically exempted by the RBI from its core provisions including registration requirement etc.
Nidhi companies are exempted from the core provisions because Nidhi Companies are governed by the Nidhi rules, 2014. These rules are very stringent in nature. One of the important conditions of Nidhi Company is that it can deal only with its members; it can take deposits only from its members and can advance loans to its members.
Further, keeping in view the stringent requirements, RBI exempt this NBFC from its compliance web.
You can even download the copy of Notification in this regard.