Chit fund, Chit Chat, Chit Meaning
- It is a contract between the managers, because the Promoter is named, and also the subscribers, World Health Organization be a part of
• For example, 20 members, 20 months, Rs.5000/- a month. Range (the quantity) of members and also the number of months square measure to be constant.
• Eligibility for award is decided by auction. All told auctions commencing from the 2d installments, subscribers will bid up to a most of four-hundredth solely. If quite one subscriber offers identical discount, the prized subscribers are going to be determined by heap.
• The Pooled funds monthly square measure offered to the subscriber’s at monthly auctions and also the subscriber World Health Organization BIDS for the very best discount is said the lottery winner and given the prize quantity on correct security.
• A Prized subscriber additionally ought to still pay the subscriptions until the termination of the account.
The amount bygone as discount, less manager’s commission is distributed among the subscribers as dividend.
All enrolled chit funds ought to contain both of the words ‘Chit Fund’ “Chitty’ or “kuri” as a major aspect of their name. no other individual or the element has the privilege to utilize these words as a feature of their names
Registered chit funds are not permitted to lead any business other than chit organizations. unless they are particularly allowed by the state government.
The total chit esteem ought not be more than 10 times its net claimed capital
The foreman is permitted to begin or run a few chits all the while However, he needs to take earlier endorsement before beginning each chitty. All publicizing materials ought to convey this permmission.
The foreman needs to store 100% of the chit esteem before the begin of another chit. in a few states, foreman are permitted to store half in real money and the rest through bank ensure
Review of records:
A Chit stores account must be inspected by sanctioned accountant. They ought to likewise be examined by the state office managing chits.
The base offer including the foreman’s bonus, ought at the very least 60% of the chit esteem. on the off chance that there is more than one bidder for a similar sum, it will be chosen by lottery
The greatest commission that can be charged by a foreman is 5% of the chit esteem