A Nidhi companyis a kind of non-banking finance firm. Nidhi Companies can be registered under Section 406 of the Companies Act, 2013. It is governed by the centralgovernment. These companies are established with the pupose of facilitating the lending of money between the core members of the company. The company recieves funds from members and lends to the members who require it, mutually benefiting both the parties. Permanent funds, mutual benefit funds, a mutual benefit company and benefit funds fall under the ambit of Nidhi Companies. However, all lending and borrowing must be in accordance with the rules laid down in Chapter XXIV of Company Rules, 2014. The company must have 200 members within a year of its formation and all the Directors must obtain DIN, DSC at the time of registering of the company.