The primary object of a Nidhi Company is to carry on the business of accepting deposits and lending money to member-borrowers only against jewels, etc., and mortgage of property. For over a century Nidhi Companies have been promoting the objective of cultivating the habit of thrift and saving among its members. Nidhi companies are allowed to take deposit from its members and lend to its members only. Therefore, the funds contributed for a Nidhi company are only from its members and used only by the members of the Nidhi Company. In recognition of the fact that Nidhi Companies deal with their members only, RBI has exempted the Nidhi Companies from the provisions and directions applicable to NBFCs. A minimum of 3 members are required to incorporate a Nidhi Company. The name of a Nidhi Company shall have the last word as “Nidhi Limited” as part of its name.