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Chit managers According to the chit managers,

the registration of chit funds ensures more transparency and accountability in its operations, which in turn helps to boost the confidence of the members.

Registered Chit Fund The risk involved in a registered

chit fund is far less than in an un registered fund, even though the cost involved is higher. And of course, in case of defaults by the parties involved, there is the possibility of legal recourse.

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Local Chit Funds  On

steps the consumer affairs department is taking to deal with such cases, a senior official of the department sounded helpless, saying, "If you buy a fridge and you are facing a problem then we can solve the matter. But in these cases of local chit funds we have nothing much to do."

Should you invest ?  Overall,

chit funds are not recommended unless it’s a person group formed by friends and relatives whom you trust a lot. I don’t think one should put money with chit funds which are not among their social circle.

It might make sense for people in smaller cities to look up to them.

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