NIDHI stands for National Initiative for Developing and Harnessing Innovations. Nidhi Company is a type of Non-Banking Financial Company (NBFC). Nidhi Company performs the functions of lending and borrowing of money within its members where it works through its members only. Nidhi Company is mainly formed for developing the habit of savings among its members only for their mutual benefit. Nidhi Company is also called as a mutual benefit company.This company is registered under the Companies Act, 2013 and is managed, as per the RBI’s guidelines. All the transactions are performed by the company’s members only. Nidhi is the secure and the economical way of raising funds from the General public by registering them as members.Nidhi Companies are also known as Permanent Fund, Benefit Funds, Mutual Benefit Funds, and Mutual Benefit Company.