Description

1. Register at least 200 members.
2. Maintain minimum net owned funds (NOF) of Rs. 10 Lakh.
3. Maintain NOF to deposit ratio of 1:20.
4. Of all the outstanding deposits, at least 10% must be unencumbered term deposits.

It works on the principle of mutual benefits that are regulated by the Ministry of Corporate Affairs. Nidhi Company is a class of Non-Banking Financial Company(NBFC) and Reserve Bank of India(RBI) has powers to issue directives for them related to their deposit acceptance activities.