The Indian financial system provides the many avenues for raising, borrowing\u2002and the provision of financial services. Including Nidhi Companies and Non-Banking Financial Companies (NBFCs) are among some of\u2002the structures that receive the most air time. Though they are two types of financial institutions, they are vastly different in terms of legal\u2002status, scope of activities, RBI regulations, capital requirements and business flexibility. People thinks wrongly about what Nidhi Company and NBFC are the same as they deal in\u2002loan and deposit. But Nidhi operates on a model of mutual benefits with a closed door (members only) business and NBFC is professionally regulated financial institution\u2002which provides more financial services to the public. It is vital to know the difference between these two before you start any business related to\u2002finance as an incorrect choice would mean facing compliance chaos, operational restrictions and regulatory headaches. In this article we are going to learn full difference between Nidhi company vs NBFC including the process of\u2002registration, legal framework, powers to do business, compliance requirement, benefits and feasibility in practical scenario.<\/p>\n\n\n\n