Nidhi is an Indian word which means 'treasure'. A nidhi company is one of the categories of non banking financial company which works through its members. Its core business is lending and borrowing money between their members. A nidhi company promotes the art of utilization and saving of funds within its member community. The companies doing nidhi businesses are known as benefit funds, mutual benefit funds, permanent fund and mutual benefit company. This type of companies is considered to be localized single office institutions. Nidhi companies cannot deal with anybody other than its members. It highly depends on honesty, integrity and loyalty of workers . It caters to the need of medium and small earning groups. A nidhi company is most secured and it includes minimum costly plan for rising resources by taking deposits from people. So we can consider a nidhi company as a public limited company which is formed with the purpose of accepting, lending, depositing money to its members.