FAQ’S
It is a savings vehicle which enables participative savings. Each scheme has 20/25 members each of whom saves a fixed amount for a fixed period. Every month the scheme-runner known as the foreman, conducts an auction for the benefit of the members. It is run as a reverse-auction where the "prize amount" is bid on discounts to it. This discount is shared equally between the members. The foreman collects a fee for running the scheme. Each scheme is registered with the State Govt, as required under regulatory rules, thereby ensuring the governance and the safety of the members’ savings.
How does the scheme work?
Each chit scheme has 20/25 subscribers who contribute a fixed amount every month for a period of 20/25 months. The amount thus collected is auctioned and paid to the bidder who agrees to take the least amount. The money left is then equally distributed among the members. Thus you end up paying less than your normal monthly instalments!
Is My Money Safe?
Yes it is! Chits conducted are governed by the Chit Fund Act 1982. Thereby, it is regulated by the Registrar of Chits and your money is absolutely safe. The aggregate value of each chit scheme is to be deposited with the Registrar of Chits.
Who can subscribe to chit funds?
Any regularly earning member of a family can become a member of the RSP Smartway chits fund, as also business-persons, traders, institutions and entrepreneurs.
How do I become a member?
RSP Smartway chits fund has devised various schemes to suit everyone’s budget. Whether you are a salaried person, businessman, lawyer, architect or any professional, we have schemes to suit everyone’s needs. You can choose any of our schems and get in touch with us.