The Chit Funds (Amendment) Bill, 2018, was introduced by Minister of State for Finance Shiv Pratap Shukla amid din.
The Bill aims to remove bottlenecks being faced by the industry.
Chit business will be required to use the term “Fraternity Fund” to signify its nature as well as to differentiate its working from “Prize Chits” which are banned under a separate legislation.
The Bill proposes to allow the two minimum required subscribers to join through video conferencing duly recorded by the foreman, as physical presence of the subscribers towards the final stages of a Chit may not be forthcoming easily.
It also hikes the ceiling of foreman’s commission from a maximum of 5 per cent to 7 per cent.