Nawab Banoo was born in Agra, India. She was born to a Muslim family, her mother was a famous singer and actress by the name of Wahidan who was well connected within the film industry. Her father, Abdul Hakim, worked as a military contractor. Her name 'Nawab' was given by her grandfather while her grandmother added 'Banoo' to make it as Nawab Banoo. As a young child, Nimmi had memories of visiting Bombay, and her mother being on good terms with Mehboob Khan and his family, who were prominent and influential within the movie making business.