CHIT FUND- ROTATION OF MONEY

ABSTRACT

Today, investment is related to saving and deferring consumption. This word investment is investment is involved in a lot of areas of economy. There are basically two types of institution where an individual invest his/her money. The first one is bank and the second one is NBFC. Bank is one that holds banking license and works under the Rules and regulations of RBI. Whereas NBFC are financial institutions that provide banking facility without meeting the services and  without meeting the legal definitions of bank. Chit Fund also comes under definition of NBFC by RBI under the sub head miscellancusnon banking company (MNBC). But RBI not laid down any regulatory frame work for them. Due to this a lot of chit fund companies are making fraud with poor people. 

FULL TEXT