About Chits

Q1. What types of chits is allowed under law

Ans. Only money chit is allowed under law.

Q2 Who can run a chit business?

Ans A corporate body or a registered firm can run a chit business.

Q3 Can a individual run a chit business?

Ans No

Q4 Is there any security money is required for chit business?

Ans. Yes,equilvalent to a total chit amount.

Q5. What is the maximum period for chit group?

Ans Twenty five months.

Q6. Is there ban on prize chit and money circulation?

Ans Yes.

Q7. Who is a foreman?

Ans A managing director of the company or partner of the firm will act as a foreman.