Union Govt Approves Ammendments to Chit Fund ACT

New Delhi Feb 20: The Union cabinet under the chairmanship of PM Modi has taken a key decisions today. The Cabinet has approved Chit Funds (Amendment) Bill which would be introduced in the parliament.

Earlier the Finance Minister Arun Jaitley in his budget of 2017 has announced that "the government will amend the 'Multi-state cooperative Act' as there was an urgent need to protect the poor from dubious chit fund schemes, operated by unscrupulous entities."

The proposed amendments to the Act include
#increasing the ceiling of foreman's commission from a maximum of 5% to 7%
#two minimum required subscribers to join through video conferencing duly recorded by the foreman
#allows the foreman a right to lien for the dues from subscribers
#removal of the ceiling of one hundred rupees

Experts said that the proposed amendments would ease the problems faced in ChitFund Industry.