Explanation.- For the purposes of this subsection, it is sufficient to obtain the signature of each participant in separate copies of the agreement. (p) the names of each participant`s nominees, i.e. the names of persons to whom customer benefits under the contract may be paid in the event of the member`s death or, failing that, if he or she is unable to reach an agreement; (l) the consequences of liability of an undated or estimated participant or foreman in the event of a violation of one of the provisions of the convention; (k) if the foreman is a person, the manner in which a chit should be prosecuted, if that person dies, becomes a weakened mind or is otherwise unable to act; 2. The duration of a business may not exceed five years from the date of its launch: o) the dates on which the foreman, and on what date, subject to the provisions of Section 44, allows the viewing of Chit data records on non-awardable and unpaid subscribers; (i) the slice in which the foreman receives the amount of the chit; Chit funds are a popular way to save loans all the time. The concept of chit funds is based on the principle of reciprocity, in which a group of people participates in a system to contribute to fixed periodic amounts and distribute the amount thus collected to each participant in turn. The foreman, the Chit Fund Company itself, is pursuing this Chit fund system. Example: the operation of chit funds can be better explained by an example. Take a typical 25-member chit that contributes 100 Rs per week. This fund lasts 25 weeks. In the first week, all members will bring in 100 members. An auction session will be held and the chit foreman will preside over the matter. The total amount is 2,500 Rs. The auction starts with this amount.
Bidders begin to bid by disfiguring this amount (reverse bid). Consider that the lowest bid of each person is 2,150 Rs. (a discount of 350 Rs). This amount (Rs 2,150) is given to this winning bidder. The balance (Rs 350) is divided by 25, which increases the discount per person to 14. This amount is returned to each member. Sometimes a portion can be retained by the foreman as a service fee, usually in organized chit funds. These (25) subscribers form a “Chit Group” and the Chit fund company can operate many such groups.