Chit is a scheme where the system works effectively only on the payment from all the membersof the group. Hence discontinuation by any member hampers the group itself and works against the interest of other members of the group. However in case of inability to pay the subscription by any
member there are 2 options.
(A) SUBSTITUTION :
In case such discontinuing subscriber is unable to provide a transfer he/she can request the Company to have a substitute in his/her place. In such cases the Company cannot commit any time period tor substitution. As and when the Company is able to get a substitute, the amount will be
refunded to the original subscriber after deducting 5% of the foreman’s commission. It may also happen that the Company may be unable to get a suitable substitute. In such a case, the amount will be refunded only after the termination of the group and deducting 5% foreman’s commission.
