Nidhi Company belongs to the non-banking finance sector. It is formed to borrow and lend money between their members. It inculcates the habit of saving among its members and works on the principle of mutual benefits. A minimum of seven members is required to start a Nidhi Company out of which three members must be the directors of the company. No need to obtain the license from the Reserve Bank of India (RBI). Hence it is simple and less complex as compared to other types of finance companies. It is registered as a public company and should have "Nidhi Limited" as the last words of its name.