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Q.

What exactly is Chit Fund ?

Tags: money, fund, chit fund
Asked by Uncommon Freind, 25 Apr '13 09:45 pm
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Answers (4)

1.

A Chit fund is a kind of savings scheme practiced in India. A Chit fund company means a company managing, conducting or supervising, as foremen, agent or in any other capacity."Chit means a transaction whether called chit, chit fund, chitty,committee, kuri or by any other name by or 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 (or a certain quantity of grain instead) by way of periodical installments over a definite period and that each such subscriber shall, in his turn, as determined by lot or by auction or by tender or in such other manner as may be specified in the chit agreement, be entitled to the prize amount".[1]
Answered by LIPSIKA, 25 Apr '13 09:51 pm

 
  
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2.

"Chit" means a transaction ( whether called chit fund, chit, kuri or by any other name), by which the foreman enters into an agreement with a number of subscribers that everyone of them shall subscribe a certain sum for a certain period and each subscriber in his turn as determined by lot or by auction, shall be entitled to a prized amount.

Example: 25 subscribers agree to subscribe an amount of Rs.4,000/- for 25 months i.e. for a total chit value of Rs.1,00,000/-, each subscriber will get his chit amount in his turn as determined by draw of lot or by auction. During auction all non-prized subscribers bid by allowing percentage of subscription to be forgone. The highest bidder i.e. who allows maximum percentage to subscribers is given the chit amount. The amount, foregone by the subscriber is distributed as dividend amongst all the subscribers in every draw, after deducting 5% commission/remuneration to be paid to the foreman of the company. Maximum bid is normally between 20% to 40 ...more
Answered by Quest, 26 Apr '13 12:15 pm

 
  
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3.

It is a Made Easy for becoming rich.....generally people get cheated.
Answered by amitava duttamajumdar, 25 Apr '13 10:03 pm

 
  
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4.

Please check this for the Information

http://chitfund.delhigovt.nic.in/basic_knowledge_about_chit_f und_.htm
Answered by Shatabdi Express, 25 Apr '13 09:48 pm

 
  
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Yes they too are cheating and they brive our politician and concern bureaucrats regularly exactly like our indigenous chit fund companies...more

Answered by Prakash Chandra