7 Things to Know About Chit Funds
Rules: In 1982 the union government passed a chit fund act and gave out guide lines for the chit fund companies. Other than this, act various state governments have passed cit fund acts according to their region. Relatively, respective companies are not allowed to involve in businesses like real estate and trading, as per the acts.
How it works:
In simple words, the chit fund is just a syndicate where people are conglomerated to invest equal amount of money every month on a mutual understanding. Investors pay prescribed amount of money every month until certain period months and the overall amount that is collected every month is given to any one of the investor, either by lucky drop or the Auction.
Also read: Ready To Debate Intolerance, Says GovT Day before Parliament's Winter Session Begins
