To regulate chit funds in India

To promote chit funds in India

To provide tax benefits to chit funds

To protect the interests of chit fund investors

A type of savings scheme

A type of investment scheme

A type of loan scheme

A type of insurance scheme

Any individual

Any company

Any society

Any trust

A group of individuals contribute a certain amount of money each month

The money is then given to one of the members as a lump sum

The duration of a chit fund is typically between 12 and 60 months

The chit fund operator charges a fee for managing the fund

Regular savings

Lump sum payment at the end of the chit fund period

Chance to win a prize

Tax benefits

The chit fund operator may default

The chit fund may be fraudulent

The investor may not win a prize

The investor may have to pay a penalty for withdrawing from the chit fund early

The Chit Funds Act, 1982

The Chit Funds Rules, 1982

The Chit Funds (Amendment) Act, 2013

All of the above

Fine

Imprisonment

Both fine and imprisonment

None of the above

To register the chit fund with the Registrar of Chit Funds

To maintain proper accounts and records

To disclose all material information to the investors

To pay the prize money to the winners on time

To receive a copy of the chit fund prospectus

To inspect the accounts and records of the chit fund

To withdraw from the chit fund early

To receive the prize money if they win

Form a society

Register the society with the Registrar of Societies

Obtain a certificate of registration from the Registrar of Chit Funds

Commence operations

Application for registration

Memorandum of association

Articles of association

Audited financial statements

12 months

24 months

36 months

60 months

Rs. 10,000

Rs. 20,000

Rs. 30,000

Rs. 40,000

Rs. 1 lakh

Rs. 2 lakhs

Rs. 3 lakhs

Rs. 4 lakhs