Key features of a Nidhi Company:

Member-Based: Nidhi Companies are member-centric, which means they are only open to their shareholders or members. The primary purpose is to promote savings and borrowing among members.

Limited Business Activities: Nidhi Companies are restricted in their business activities and cannot engage in the broader range of activities that traditional banks and NBFCs can. They primarily deal with the acceptance of deposits and lending money to members.

No External Deposits: Nidhi Companies can only accept deposits from their members, and they are not allowed to accept deposits or loans from the public or non-members.

Mutual Benefit: The funds collected from members are used for the mutual benefit of the members, primarily through loans and advances. The company's aim is to provide financial support to its members, especially for small-scale business and household needs.

Nidhi in the Name: A Nidhi Company must have the word "Nidhi" in its name, as per the Nidhi Rules, 2014.

Minimum Capital Requirement: There is a minimum capital requirement that a Nidhi Company must meet before it can commence operations, as per the rules set by the MCA.

Regulation: Nidhi Companies are regulated by the MCA, and they need to comply with the Nidhi Rules and other relevant regulations.