FAQ'S
It is a savings vehicle which enables participative savings. Each scheme has minimum 25 members each of whom saves a fixed amount for a fixed period. Every month the scheme-runner known as the foreman, conducts an auction for the benefit of the members. It is run as a reverse-auction where the ”prize amount” is bid on discounts to it. This discount is shared equally between the members. The foreman collects a fee for running the scheme. Each scheme is registered with the state Govt, as required under regulatory rules, thereby ensuring the governance and the safety of the member’s savings.
IS MY MONEY SAFE?
Yes it is! Chits conducted are governed by the Chit Fund Act 1982, thereby, it is regulated by the registrar of chits and your money is absolutely safe. The aggregate value of each chit scheme is to be deposited with the registrar of chits.
WHO CAN APPLY CHIT FUNDS?
Any regularly earning person can become a member of the SiriAdarsha Chits Community, as also business-persons, traders, institutions and entrepreneurs.
WHAT IS AN AUCTION?
Auction is a procedure for identification of the non-prized subscribers who have paid their instalments up to date are allowed to participate in the auction for bidding up to the highest auction discount, within a period, five min members allowed for each auction.
WHAT ARE THE MODE OF PAYMENT?
Members can make payment either by cash, cheque or demand draft. The cheque has to be released before the auction date if the member wants to participate in auction.
WHETHER COMPANY WILL BE A SUBSCRIBER IN ALL THE CHIT GROUPS FORMED?
Yes the company will be the first ticket holder in all groups as per Chit Fund Act.
WHETHER ANY DOCUMENT IS REQUIRED TO BE SIGNED AT THE TIME OF JOINING THE GROUP?
An agreement has to be signed in the format presribed by the Co-operative department at the time of joining a group.
WHEN THE SUBSCRIBERS WILL BECOME ELIGIBLE TO RECEIVE THE DIVIDEND?
Instalments have to be paid in full for the first and second month. Members become eligible for a dividend from the third month.Till the end of the chit period.
IF MORE THAN ONE BIDDER OFFER THE MAXIMUM AT THE TIME OF AUCTION WHO WILL BE CONSIDERED FOR THE PRIZED AMOUNT?
If the number of bidders quoting maximum offer in a monthly auction exceeds one, draw will be conducted to decide the prized bidder.
WHETHER ANY SECURITY IS REQUIRED TO BE OFFERED BY THE PRIZED BIDDER?
Yes prized amount will be disbursed on furnishing adequate collateral security to cover the future liabilities by way of guarantors, bank guarantees, deposit of title deeds with memorandum being registered.
WHEN THE PRIZED BIDDER WILL BECOME ELIGIBLE TO RECEIVE THE PRIZED MONEY?
Prized money will be disbursed to the prized bidder on completion of the formalities and on furnishing the necessary required securities acceptable to the company by the prized bidder. The amount will be paid by account payee cheque only.