Hyderabad: The government is set to put up details of all chit fund companies in the state online to enable people to take informed decisions on subscribing to such schemes.
The paid-up capital of chit fund companies, number of running groups, total amount collected by these groups besides details of company addresses and registration numbers will be put up online and updated every month.
Besides, all chit fund companies have to mortgage with the government assets equivalent to the amount collected for various chit groups or give bank guarantees for the equivalent amount.
These are part of the stringent norms being brought in by the Telangana government to check fly-by-night chit fund operators.
Incidents of chit fund companies vanishing without trace after collecting money from subscribers have been on the rise. The government has come under fire for failing to control bogus operators. The government will use the mortgaged assets or bank guarantees of chit fund companies to compensate subscribers in case of irregularities.
Registrar of Cooperative Societies will act as the implementing agency to ensure that all chit fund companies comply with these norms. All chit fund companies have to now mandatorily register with this agency and submit chit details every month to be updated on its website.
“A separate online system is being created for the purpose. All the chit details of firms will be updated online every month. This will bring transparency and accountability in the business. The trail runs are being held currently and the new system will be put in place in a few days,” said Pocharam Srinivas Reddy, the minister for cooperative societies.
He said barring the names of subscribers for chit fund schemes, all other information will be made public.
Chit Details:
1,500 Chit fund companies in Telangana
500 Chit funds in the organised sector
Rs 5,000cr total amount circulated in chits per year
10 lakh: Customer base of chits
1,000 Chit funds in the unorganised sector.
