Nidhi Company is regulated by the Ministry of Corporate Affairs (MCA) and can accept deposits or lend money to its members, it cannot carry the business related to hire purchase finance, leasing finance, insurance, or acquisition of securities issued by any body corporate. On the other hand, NBFC is granted a license by the Reserve Bank of India (RBI) and is engaged in the business of granting loans/advances, acquisition of shares and securities issued by Government or local authority, leasing, hire‐purchase, insurance business, chit business, etc. as per the category of NBFC license.