rambabu wrote:

I know about these Chit funds of Hyderabad. We used to call then as " Cheat" funds. These Chit funds can be seen all over the state of AP. All of them are not CHEAT Funds. But many are really CHEAT funds. Those, who become members without verification lost lot of Money. Similarly, one has to exercise lot of caution before joining these Fraud Companies.

These chit funds still thrive as the basis behind them is greed both of the man who runs and also the investor who wants higher and exorbitant interest.

I know that these chit funds are still thriving. I also know the basis for their survival is Greed. But I would like to say, there are some really genuine Chit Funds. I know people who invested in these genuine chit funds they never repented.

Chit funds are like any other informal savings. So they are likely to thrive in future too. No doubt some chit fund organizer have been involved in scam but when they are organized by trustworthy people they can be a geat way of saving. Many people who cannot visit bank regularly prefer informal saving methods such as chit funds. Its not about their greed but about their convenience

With a view to save little amounts of Money, , Investing in Chit Funds is not a bad idea, rather good. It is convenient. The primary advantage is, it is simple and easy.

But, there are Chit Fund organizations, that use the gullibility in the people, especially in the rural regions for their advantage. Which is why, in my State made all  Chit fund organizations should be registered..

These registered.  organizations are functioning well  Despite all this, , there are many cases of cheating.  That is why, it is necessary to verify the ingenuity of the organization before investing.

jabeen wrote:

Chit funds are like any other informal savings. So they are likely to thrive in future too. No doubt some chit fund organizer have been involved in scam but when they are organized by trustworthy people they can be a geat way of saving. Many people who cannot visit bank regularly prefer informal saving methods such as chit funds. Its not about their greed but about their convenience

Very true , there are many small time chit fund schemes formed by private individuals too. My maid was telling me about the working system of one where she too is a member. Normally they form a group of about 20 - 25 trusted members well known to at leat 5 members. The money is donated every month  for 12 months,  in her case RS 5000 . For the first 3 months there will be no withdrawal. On the 4 the month whoever is in need can bid and gets their 4 months donation plus one more month which would be 25 thousand rupees. The person has to however pay the monthly remittance until.tje end. The other members share the extra money. This happens every month and almost every month someone or the other bids and so makes more money for others. Once my maid got more than a lakh at the end of the period ..There is no fear of cheating because it concerns all..

I agree we cannot whitewash all chit funds as bad. They serve a purpose and help in informal savings.

There a few Registered Chit fund Companies which offer reliable services and issue guarantee cerificates for the members. Another good feature is these Chit fund companies arrange regular meetings, where the members can problems, if any. And the Management immediately solves them

Babu saroj wrote:

Yesterday, I read in the newspaper that Sunny Leone is been inspected for this huge scam.

Those who promotes scam companies should be punished hard. Some people promote products without knowing details about that product. One such incident happened with James Bond when he promoted "Paan Bahar".

 Did James Bond promoted Paan Bahar ? Manog please give me a link

rambabu wrote:

 Did James Bond promoted Paan Bahar ? Manog please give me a link

See the below link, I have watched it many times  on television:

http://www.ndtv.com/india-news/shocked-and-saddened-pierce-brosnan-speaks-up-on-pan-bahar-ad-1477008