Chit funds are a popular saving option among housewives, retirees, businessmen etc. But very few chit fund companies are making deals in a fair and transparent way. We are seeing many companies “cheating” people by making frauds and sometimes becoming insolvent too to repay the savers money.
Till Now, Chit Funds dealings are registering “Manually” and are submitted to the chits registrars office on month-on-month basis. This are being done through files and there are many loopholes to cheat the public.
Noticing this, government instructed all chit fund companies to implement online records which can be tracked by the government anytime. All the dealings including chit value, members details, auctioner details, remaining chit value details are to be provided online.
This is bring to protect the interest of savers and follow fair policies and practises by the chit fund companies. This action would protect the savers to some extent, but the saver should be aware of the chit fund company brand value, their policies and transparency and after knowing the full details of the chit company only, the saver has to save in that Particular chit company.
Here, the Caveat Emptor(Let the consumer be aware)rule applies! So after knowing the full details about the chit company only, save in that chit funds. Government will protect us to some extent, but it is in our hands to protect ourselves!
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