New Chit Group will be commenced only after receipt of Official Clearance (Permission to start a Chit Group) from the concerned Govt Department.


At the time of commencing a New Chit Group, an Agreement will be entered into in the format as prescribed by the Co-operative Department of the Government of Karnataka.


Subscribers will have to pay the maximum monthly subscription in First and Second Installments. From second month (action) onwards they will be eligible to receive Dividend as per the bidding in that month. But, this dividend amount will not be given in cash and will be deducted while receiving a third monthly installment.


Subscribers must remit the installment before the date of Chit Auction.


Subscribers can pay the Chit Amount/Subscription every month either by Cash / Demand Draft / Cheque, through the Collector directly at the Office or transfer the Subscription Amount to the Company's Account through NEFT / RTGS / On-line Transaction.


Official Receipt will be issued acknowledging the payment of Chit Subscription and all transactions of the Subscriber will be recorded in the Pass Book.


The Maximum Discount allowed in any Chit Auction shall not exceed 30% of the Chit Amount and shall not be less than 5% of the Chit Amount.


Prized Subscriberwill be decided every month through Public Auction and the bidders/subscribers foregoing the highest discount (bid) will be declared as the Prized Subscriber for that month.


If in any month, more than one Bidder / Subscriber offers to forego the same quantum of discount, in such cases, the winner will be selected through Lottery on the spot, in the presence of Subscribers present on that day.


Adequate Security, acceptable to the Company, will have to be provided by the Prize Winners / Prized Subscribers at the time of taking payment of the Chit Amount.