Legal Framework & Regulations

Government Compliant Operations | Tamil Nadu Chit Funds Act

Registered with ROC

Registered with Registrar of Companies, Chennai

Reg No: U65992TN2019PTC133154

Tamil Nadu Chit Funds Act

Compliant with Tamil Nadu Chit Funds Act 1961

100% Compliance

Regular Audits

Annual audits conducted as per government requirements

Audited Annually

Government Rules

Key provisions of the Tamil Nadu Chit Funds Act 1961

Member Rights & Protections

  • Right to inspect chit fund records and accounts
  • Right to receive monthly statements
  • Right to participate in auctions
  • Right to receive dividend from discounts
  • Right to file complaints with regulatory authorities

Company Obligations

  • Maintain proper books of accounts
  • Conduct auctions as per schedule
  • Disburse funds within specified time
  • Submit annual returns to Registrar
  • Maintain security deposit as per rules
  • Allow member inspection of records

Auction Regulations

  • Auctions must be conducted in open hall
  • Minimum two witnesses required
  • All bids must be recorded
  • Winner must be declared immediately
  • Discount cannot exceed 20% of chit amount
  • All members must be notified 7 days in advance

Member Responsibilities

Your obligations as a chit fund member

Payment Obligations

  • Pay installments on or before due date
  • Late payments attract penalty charges
  • Default may lead to forfeiture
  • Winners must continue payments till maturity

Auction Participation Rules

  • Only non-winners can participate
  • All installments must be paid up to date
  • Bids must be within specified limits
  • Winner must complete formalities within 24 hours

Documentation Requirements

  • Provide accurate personal information
  • Update address/phone changes immediately
  • Submit required documents for verification
  • Maintain valid bank account details

Payment Terms

Understanding installment and penalty structure

Installment Due Dates

Installments are due on the same date every month as per your agreement. For example, if you joined on 5th, your installments are due on 5th of every month.

Late Payment Penalties

A penalty of ₹50 per day is charged for delayed payments. If payment is delayed beyond 30 days, the member may be declared as defaulter.

Early Settlement Options

Members can settle their chit early by paying all remaining installments at once. A small processing fee may apply.

Payment Methods

Payments can be made through cash, cheque, online transfer, or UPI. All payments must be made at the branch or through authorized channels.

Withdrawal Rules

Procedure for exiting a chit fund

1

Procedure for Exiting

Submit a written application to the branch manager stating your reason for withdrawal. The application must be submitted at least 15 days before the next installment due date.

2

Forfeiture Rules

If you exit before completing half the duration, you may forfeit a portion of your payments. After completing half the duration, you're eligible for proportional refund.

3

Refund Policy

Refund amount is calculated based on payments made, minus applicable charges and forfeiture. Refunds are processed within 30 days of approval.

Dispute Resolution

How we handle grievances and disputes

Grievance Redressal

Submit your complaint in writing to the branch manager. We aim to resolve all grievances within 7 working days. You can also call our helpline or email us.

Arbitration Clause

As per the agreement, disputes are resolved through arbitration. An independent arbitrator is appointed as per Tamil Nadu Chit Funds Act provisions.

Legal Jurisdiction

All legal matters fall under the jurisdiction of courts in Tamil Nadu. Members can also approach the Registrar of Chit Funds for complaints.

Document Downloads

Download important documents and forms

Chit Agreement

Standard chit fund agreement template

Download PDF

Rules Booklet

Complete rules and regulations booklet

Download PDF

Complaint Form

Grievance redressal complaint form

Download PDF

Withdrawal Form

Chit fund withdrawal application form

Download PDF

Have Questions About Rules?

Our team is here to help you understand all regulations and your rights as a member.