Chit Fund Act changes

The Government is to amend the Chit Funds Act, 1982, to raise the limits of aggregate chits that can be raised.

For individual chits, the amount that an be raised by the foreman is to be raised from Rs 25,000 to Rs 1 lakh. The government is also raising the ceiling on discount to be foregone by the prized subscriber to 40 per cent from the existing level of 30 per cent.

The foreman can also provide 50 per cent of the security to the registrar in cash and the rest as a bank guarantee.