STOCK MARKET BSE NSE

Lok Sabha gives approval to chit fund bill

The maximum commission for foreman, who is responsible for managing the chit, is proposed to be raised from 5 per cent to 7 per cent.

Published: 20th November 2019 07:32 PM  |   Last Updated: 20th November 2019 07:32 PM   |  A+A-

Lok Sabha

The lower House of Parliament on Monday. (Photo| Screengrab)

By PTI

NEW DELHI: A bill to raise the monetary limits for chit funds and higher commission for "foreman" was approved by Lok Sabha on Wednesday.

The Chit Funds (Amendment) Bill, 2019 also introduces words such as "fraternity fund", "rotating savings" and "credit institution" to make chit funds more respectable, said Minister of State for Finance Anurag Thakur.

The maximum chit amount is proposed to raise from Rs 1 lakh to Rs 3 lakh for those managed by individuals or less than four partners, and from Rs 6 lakh to Rs 18 lakh for firms with four or more partners.

The maximum commission for foreman, who is responsible for managing the chit, is proposed to be raised from 5 per cent to 7 per cent.

The bill also allows the foreman a right to lien against the credit balance from subscribers.

The foreman denotes the person who is responsible to handle the chit fund process.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp