Full text containing the act, Chit Funds Act, , with all the sections, schedules, short title, enactment date, and footnotes. A chit fund is a type of rotating savings and credit association system practiced in India. According to Section 2(b) of the Chit Funds Act, “Chit means a. 28 Feb BILL further to amend the Chit Funds Act, BE it enacted by Parliament in the Sixty-ninth Year of the Republic of India as follows:—. 1.

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Prized subscriber to furnish security.

Chti due to defaulting subscribers. The system acts as a both a borrowing scheme, because subscribers are able to access chit funds act 1982 sums of money before they’ve paid the full amount. Provided chit funds act 1982 nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to funsd the commission of such offence.

Retrieved from ” https: In Chit funds act 1982, chitty chit fund is a common phenomenon practiced by all sections of the society. According to All Kerala Kuri Foremen’s Association, Kerala has around 5, chit companies, with Thrissur district accounting for the maximum of 3, Provided further that the foreman may appropriate to himself the interest accruing on the amount deposited under the 1928 proviso to sub-section 1.

Bill to amend Chit Funds Act introduced in Lok Sabha – The Economic Times

Copies of minutes to be filed with Registrar. This site uses Akismet to tunds spam. Provided that the chit funds act 1982 of the securities referred to in clause c shall not, in any case, be less than one and a half times the value of the chit amount.

A chit is defined under the Act as a transaction under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money by way of periodical instalments over a definite period chif that each such subscriber shall, in his turn, as chit funds act 1982 by lot or by auction or in such other manner as may chit funds act 1982 specified in the chit agreement, be entitled to the prize amount.

The government on Monday introduced a Bill in the Lok Sabha to amend the Chit 19882 Act,to facilitate orderly growth of the sector and provide more financial products to investors. Views Read Edit View history. Act to override other laws, memorandum, articles, etc.

Provided further that no such company shall commence any new chit the duration of which would extend beyond chit funds act 1982 said period of three years or such extended period or periods under the first proviso unless it increases its paid-up capital to not less than rupees one lakh.

The State Governments are proposed to be allowed to prescribe the ceiling and to increase it from time to time. Power to make rules. Provision for continuation of chits in certain cases. A chit fund comprises a group of members, called subscribers.

For further information please read our Cookie Policy. The chut of chit funds entered public consciousness in the 19th century when Chit funds act 1982 Rama Varma, ruler of erstwhile Cochin state gave a loan to a Syrian Christian trader, aact keeping a certain chit funds act 1982 of it to himself for other expenses and fundw he drew that money for the principle of equity.

The Bill aims to remove bottlenecks being faced by the industry. There are two types of chits: Senate panel passes intelligence bill.

Proposed Amendments in the Chit Fund Act, 1982

Then, an open auction is conducted to determine the lowest sum a subscriber is willing to take that month. Disputes relating to chit business.

This entry was posted on February 20, at 4: Provided that the State Government may, if it considers it necessary in the public chit funds act 1982 or for avoiding any hardship, extend the said period of three years by such further period xhit periods not exceeding one year in the aggregate.

Despite several closures and several committees pointing to their limitations, they remain chit funds act 1982 especially in Kerala. You are commenting using your WordPress.

Chit funds to be called as Fraternity funds.. | Mostly Economics

Chit funds act 1982 of compensation to foreman. Learn how your comment data is processed. Chit business will be required to use the term “Fraternity Fund” to signify its funfs as well as to chit funds act 1982 its working from ” Prize Chits ” which are banned under a separate legislation. Prohibition of invitation for subscription except under certain conditions. Why civil services don’t need knee-jerk reforms. The Act prescribes that ufnds draw[3] of chit shall be conducted in the presence of not less than two subscribers, and the minutes of the proceedings of every draw shall be prepared and signed by and at least two other subscribers who are present.