The annual general meeting of the All India Association of Chit Funds has been held on (30/09/2022) at Chennai.

By in Business News, News

A new governing body has been constituted with the election of the
following office bearers and nomination of other members.
1. Mr. V.C. Praveen – President.
(Sree Gokulam Finance and Chit Company Pvt. Ltd)
2. Mr. T.S.Sivaramakrishnan – (Immediate Past President and Chairman- Advisory Board)
(The Balussery Benefit Chit Fund Pvt Ltd)
(3. Mr. A.Chitrarasu – General Secretary.
( Kurinji Chit Funds Pvt. Ltd)
4. Mr.Kamal Bhambhani – Organizing Secretary
( Chandralakshmi Chit Funds Pvt. Ltd)
5. Mr. A.P.Arunachalam –Treasurer.
( The Mayavaram Financial Chit Corporation Ltd)
The newly elected President, Mr. Praveen, has said that the membership of the association would be strengthened and a strategy would be formulated to ensure a better growth of the chit fund industry.

The Chit fund which is an unique financial instrument that combines savings and borrowing has a huge potential to grow and serve the unbanked and under-banked people.

The growth of the Chit fund industry will help promote financial inclusion. Chit fund is the only financial institution, apart from banks, that helps mobilize savings from the middle class people. Chit funds have been helping small businesses, the self employed and the startups for a long time.

The Chit Funds Act, 1982, which is a reactionary legislation passed 40 years ago needs to be amended, to be in tune with the current trend. The association will renew its efforts in getting the required amendments made.

The GST levied on chit fund services will affect the growth of the industry significantly. While the financial services rendered by financial institutions like, Banks, NBFC’s and Micro Finance Institutions are exempt from the levy of GST, the financial services provided by chit funds are subject to a levy of 18%. This is an anomaly that needs to be corrected. The association shall pursue the matter vigorously with the authorities concerned to get the levy of GST on chit fund services cancelled, the President said.