Aarambh Civil Services Academy

Nidhi Companies

Consider the following statements with reference to the Nidhi Companies:

  1. Nidhi companies cannot accept Deposit from the public, nor lend to the public, so they are not purely NBFCs, and out of the scope of RBI.
  2. It cannot carry any business related to chit fund, hire purchase finance, leasing finance, insurance, or acquisition of securities issued by anybody corporate.

Which of the statements given above is/are correct?

A
Only 1
B
Both 1 and 2
C
Only 2
D
None of the Above
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