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