Chit Fund Safety Checker
A registered chit fund is a legal way to save and borrow. An unregistered one is where organisers vanish with the pot. Tick what’s true about yours to see the warning signs — and how to verify it. Everything runs in your browser.
Educational tool only. It does not confirm any specific chit fund or organiser is genuine — only your state Registrar of Chits can do that. It flags warning signs and shows you how to verify.
No red flags ticked — but verify registration before you join.
A clean checklist is not a guarantee. Always confirm the chit is registered with your state Registrar of Chits and that you get a signed chit agreement.
Warning signs present — be cautious.
Do not pay or sign anything until you have verified the chit’s registration and read the agreement carefully.
Multiple serious warning signs — high risk.
This shows the classic signs of an unsafe or fraudulent chit scheme. Do not hand over money. Verify with the Registrar of Chits and consider reporting it.
Tick everything that’s true about this chit fund. Each tick explains why it’s a warning sign.
How to verify a chit fund
- A legal chit fund must be registered with the state Registrar of Chits under the Chit Funds Act, 1982, and have a registration / FDR number. Ask for it.
- You should get a signed chit agreement listing the foreman, members, chit value, duration and the foreman’s commission (legally capped, typically up to 5%).
- Money should go to the registered chit company, never to an organiser’s personal account in cash without receipts.
- A chit fund is a savings-and-borrowing arrangement — anyone promising “guaranteed returns” or “profit” has misunderstood it, or is misleading you.
- Trouble or fraud? Complain to your state Registrar of Chits, the police, or the cyber-crime helpline 1930 / cybercrime.gov.in.