Andhra Pradesh Rolls Out New Policy to Regulate Chit Fund Schemes

Amaravati: Following the Margadarsi Chit Funds Private Ltd fiasco and to bring transparency in running the chit fund business, the Andhra Pradesh government announced a new chit fund policy on Monday. 

Unveiling the new policy pertaining to the chit funds, the Revenue Minister Dharmana Prasada Rao said going forward the chit fund business will be done only in online mode. On this occasion, he launched ‘e-chits’ — a new electronic application developed with the coordination between Andhra Pradesh Revenue, Registration and Stamps department.   

The state minister asserted that according to the new policy, the entities involved in the chit fund business will be required to carry out the transactions in online only mode. Explaining the benefits of the new policy, Dharmana said the depositors would be able to keep track of their deposits through the e-chits app. He added the other benefit of the app is that the chit fund depositors would have a peace of mind as they would be able to know whether their deposited money is safe or not. 

“The objective of the new chit fund policy is to make sure the depositors are not cheated by the companies involved in financial services,” Revenue Minister Dharmana Prasada Rao said. 

The state Registration department has been tasked with monitoring the chit fund schemes online and to issue clearances. The minister further said the new policy is mandatory and all the registered chit fund companies should comply with the new policy guidelines. 

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