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Parliament proceedings: Lok Sabha passes amended Chit Funds Bill

It seeks to protect interests of investors, especially from the economically weaker sections of the society

The Lok Sabha on Wednesday passed the Chit Funds (Amendment) Bill, 2019 that seeks to regulate chit fund operations and protect the interests of investors, especially from the economically weaker sections of the society. The Bill seeks to amend the Chit Funds Act, 1982.

The Bill was passed by voice vote.

The proposed changes include rise in maximum commission of the person who manages the fund from 5% to 7% of the chit amount.

The prescribed ceiling of aggregate chit fund amount for individuals has been raised from ₹1 lakh to ₹3 lakh and in case of firms, the limit has been raised from ₹6 lakh to ₹18 lakh.

Speaking during discussion on the Bill, Adhir Ranjan Chowdhury (Congress) said there was no dearth of legislation and this new Bill should provide a robust system for punishment.

Replying to a debate, Minister of State for Finance Anurag Thakur said the Bill had been brought to protect the interests of investors belonging to the poor and marginalised sections of the society.

He said the government wanted that money should be returned on time to those investors who had been cheated in such schemes.

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