In India, the Chit funds are governed / Regulated by ___?

In India, the Chit funds are governed / Regulated by ___?
[A]RBI
[B]Central Government
[C]State Governments
[D]Local Bodies

State Governments
Chit funds in India are governed by the Chit Funds Act, 1982. Under this Act, the chit fund businesses can be registered and regulated only by the respective State Governments. Regulator of chit funds is the Registrar of Chits appointed by respective state governments under Section 61 of Chit Funds Act. Powers of adjudication vest in the Registrar and the state government concerned is the Appellate authority. In case of failure of a chit fund business, the responsibility for winding up such a business also vests with the respective State Governments. Moreover, the Prize chits and money circulation schemes are illegal and are banned under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. Powers of investigation under this Act are vested with the concerned state police authorities.

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Comments

  • Monica
    Reply

    Can we Incorporate a Chit Company in one State and carry on chit fund business across all States in South India.