What is the difference between Nidhi companies and Chitfunds?

What is the difference between Nidhi companies and Chitfunds?

The difference between Nidhi company and Chit funds is following :-

Nidhi Company is the type of Non-Banking Financial Company (NBFC) which can take a deposit and lend money to its members. Nidhi Company has been exempted from the Reserve Bank of India (RBI) provisions, and hence no RBI license is not mandatory

Chit Fund Company is also known as the committee, it is a type of a saving scheme in India where fixed installment is paid by the members over a definite period of time. It is one of the special type of companies which require additional licenses to work.


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