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  • Chit Funds (Amendment) Bill, 2019 moved in Lok Sabha

    Published on November 18, 2019

    Minister of State for Finance, Anurag Thakur moved the Chit Funds (Amendment) Bill, 2019 for consideration in the Lok Sabha today.

    The Bill seeks to amend the Chit Funds Act, 1982 which regulates chit funds and prohibits a fund from being created without the prior sanction of a state government.

    Moving the Bill, Mr Thakur said chit funds provide an important source of finance and avenue to save small businesses and households.

    He said although many people view chit funds negatively, they are for the people who have no other means of savings or taking credit from banks.

    The Chit Funds (Amendment) Bill, 2019 specifies various names which may be used to refer to a chit fund.

    The Bill additionally s a  ‘fraternity fund’ and ‘rotating savings and credit institution’ to this list. The legislation seeks to increase the commission of a foreman to 7 per cent. Further, the Bill allows the foreman a right to lien against the credit balance from subscribers.