Q. Consider the following statements regarding Chit Funds in India:

1. They are under the jurisdiction of the Reserve Bank of India (RBI).
2. They are registered with the State governments and regulated by the Central Government.

Which of the above statements is / are correct?
Answer: Neither 1 nor 2
Notes: Chit funds do not fall under the purview of the Reserve Bank of India (RBI); instead, they are regulated and registered by State Governments under the Chit Funds Act, 1982. The Centre frames the law, but regulation and implementation are by State authorities. Thus, both the statements given are incorrect as per the present legal and regulatory framework.