size of the registered Chit Fund industry, how it serves the members, what is the cost of funds and

finally what is the size of its unregulated counterparts collected data from the Office of the Registrar of Chits in five different states in India Tamil Nadu, Andhra Pradesh, Karnataka, Kerala and Delhi on the number and type of Chit Fund schemes registered over the years understand the profile of Chit Fund members and how they use the Chit Fund money, we surveyed a sample of around 400 Chit Fund members from each understand the profile of Chit Fund members and how they use the Chit Fund money, we surveyed a sample of around 400 Chit Fund members from each

The Act also requires all registered Chit funds to impose a 40% cap on the bidding amount. This 40% is calculated on the chit value of the scheme. This bid-cap is administered to ensure that the bid does not rise uncontrollably leading to subsequent default by the bidder. The minimum bid is restricted to 5% of the chit value which is the foremans (or chit managers) commission.