Perpetual Succession- Nidhi Company goes on and on until it is legally dissolved. As private limited company is having separate legal identity, so it is unaffected by the death or other exit of any member and continues to be in existence irrespective of any changes in ownership.

Nidhi company is type of NBFCs and RBI is empowered to issue directions to them for deposit acceptance activities. However, as Nidhi’s deal with their shareholder-members only, RBI has exempted the notified Nidhi’s from the core provisions of the RBI Act and other directions applicable to NBFCs.

Management- The Board of Management of a Nidhi company can be easily altered by filing forms with the Registrar of Companies. Board controls the activities of the Nidhi Company.

Since Nidhi company gives a loan to its members, only if members provide some securities such as Gold, jewellery, properties, FD, NSC etc., so in case of non-repayment of loan they can be sold and there are very less chance of NPA or bad debt

Minimum Members and capital: It must not have less than 200 members and net owned fund should be INR 10 lakhs

Net owned funds to deposits ratio should be more than 1:20 and Unencumbered deposits of not less than 10% of the outstanding deposits should be there