FAQ'S
A chit fund is a collective savings scheme that promotes disciplined and participative savings among its members. Each fund typically consists of at least 25 members who contribute a fixed amount monthly for a defined duration. Every month, an auction is held by the scheme’s organizer, known as the foreman, where members bid for the pooled amount through a reverse auction—offering discounts on the prize money. The discounted amount is then distributed among all members, making it a shared benefit. The foreman earns a fee for managing the fund. All chit fund schemes are registered with the respective State Government, ensuring compliance with regulatory guidelines and safeguarding the interests of the participants.
Yes it is! Chits conducted are governed by the Chit Fund Act 1982, thereby, it is regulated by the registrar of chits and your money is absolutely safe. The aggregate value of each chit scheme is to be deposited with the registrar of chits.
Any regularly earning person can become a member of the Janasnehi chits Community, as also business-persons, traders, institutions and entrepreneurs.
Auction is a procedure for identification of the non-prized subscribers who have paid their instalments up to date are allowed to participate in the auction for bidding up to the highest auction discount, within a period, five min members allowed for each auction.
Members can make payment either by cash, cheque or demand draft. The cheque has to be released before the auction date if the member wants to participate in auction.
Yes the company will be the first ticket holder in all groups as per Chit Fund Act.
An agreement has to be signed in the format presribed by the Co-operative department at the time of joining a group.
Instalments have to be paid in full for the first and second month. Members become eligible for a dividend from the third month till the end of the chit period.
If the number of bidders quoting maximum offer in a monthly auction exceeds one, draw will be conducted to decide the prized bidder.
Yes prized amount will be disbursed on furnishing adequate collateral security to cover the future liabilities by way of guarantors, bank guarantees, deposit of title deeds with memorandum being registered.
Prized money will be disbursed to the prized bidder on completion of the formalities and on furnishing the necessary required securities acceptable to the company by the prized bidder. The amount will be paid by account payee cheque only.