Lawstreet Journal

Parliament Passes The Chit Funds (Amendment) Bill [Read Bill]

Lawstreet Journal 29 Nov 2019 7:41pm

Image courtesy: Lawstreet Journal Legislative Corner Parliament Passes The Chit Funds (Amendment) Bill [Read Bill]

The Rajya Sabha on November 28, 2019, passed the Chit Funds (Amendment) Bill, 2019, that seeks to amend the Chit Funds Act, 1982, to streamline operations of chit funds in India and to protect the interests of investors, mainly the economically weaker sections of the society.

The Bill was passed by the Lok Sabha on November 20, 2019, after it was introduced in the Lower House of the Parliament on August 5, 2019.

Under a chit fund, people agree to pay a certain amount from time to time into a fund.  Periodically, one of the subscribers is chosen by drawing a chit to receive the prize amount from the fund.

The main changes proposed by the Bill are:- 

  1. Names for a chit fund: The Act specifies various names which may be used to refer to a chit fund. These include chit, chit fund, and kuri.  The Bill additionally inserts ‘fraternity fund’ and ‘rotating savings and credit institution’ to this list.
  2. Substitution of terms: The Act defines certain terms in relation to chit funds. It defines: (a) ‘chit amount’ as the sum of subscriptions payable by all the subscribers of a chit; (b) ‘dividend’ as the share of the subscriber in the amount kept apart for running the chit; and (c) ‘prize amount’ as the difference between chit amount and the amount kept apart for running the chit.  The Bill changes the names of these terms to ‘gross chit amount’, ‘share of discount’ and ‘net chit amount’, respectively.
  3. Presence of subscribers through video-conferencing: The Act specifies that a chit will… Continue Reading...

    Tagged: Chit Funds   lok sabha  
Disclaimer: SoOLEGAL in Media collaboration with Lawstreet Journal. SoOLEGAL take no responsbility for the content provided by Lawstreet Journal. For any discrepancies Contact Lawstreet Journal.
Did you find this write up useful? YES 0 NO 0
×

C2RMTo Know More

Something Awesome Is In The Work

0

DAYS

0

HOURS

0

MINUTES

0

SECONDS

Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.
×

SAARTHTo Know More

Launching Soon : SAARTH, your complete client, case, practise & document management SAAS application with direct client chat feature.

If you want to know more give us a Call at :+91 98109 29455 or Mail info@soolegal.com