Significance of Nikaya
Nikaya is a term that relates to the collections within the Pali canon in both Mahayana and Theravada traditions. In Mahayana, it refers to collections of Suttas organized by themes, while in Theravada, it designates the divisions that categorize the teachings of the Buddha. Both interpretations indicate the importance of these collections in understanding the teachings of Buddhism.1
The below excerpts are indicatory and do represent direct quotations or translations. It is your responsibility to fact check each reference.
Buddhist concept of 'Nikaya'
Nikaya in Buddhism symbolizes the organized collections within the Pali canon, categorizing the Buddha's teachings into themed Suttas that facilitate understanding and study of core Buddhist principles.
Significance in Theravada (major branch of Buddhism):
Theravada
Books
From: Vinaya (3): The Cullavagga
(1) The collections of discourses attributed to the Buddha, which are fundamental texts in the Theravada Buddhist tradition.[1]
From: Dhammapada (translated from the Pali)
(1) A term designating the collections or divisions within the Pali canon, which categorize the Buddha’s teachings.[2]
Plural form: Nikayas.