Development

• Chit is financial system under which

regular savings of money for a group of
subscribers as specific amount every month
for a specific period
• Chit provide good source of finance for
different types of people
• Chit is a contract between Foreman &
subscribers who joins voluntarily
• chit fund business runs according to chit
fund act
• monthly auction to subscribers who bids
highest amount declare as a winner
• new chit has to be registered according
to chit fund act ,it states that so & so person
is responsible for this company
• chit business contents:- bye law-
Chit agreement
Prized &non prized
Date of commencement
Auctions
FDR
 • Some people joins to save (or) future
savings.
• Chits consist state &central act

AGENTS RECRUITRMENT
• Agents recruitment will be done by manager basing
on their communication levels & knowledge
• Minimum qualification is S.S.C
• Agents create business for company
• 1% paid to agents on ticket
• Agents are the middle man between foreman &
subscribers
• Every agents will have there separate ID-NO
• Agents will take responsible for there member
TERMINATION CHIT FOLLOW-UP
• Chit consist of specific time period(40 to 50)months
• When a chit group specific time period was finished
(or) finishing the agents (or)marketing executives will
follow up our subscribers
• Termination chit follow up is the process of
intimating about chit termination to consumers
&making them to access another group explaining
about new group

Agents meet &mini meets

 • Agents meet will held on every month it includes
discussion with managers regarding their chits business
& opinions and problems
• Managers will motivate agents by rewarding them
• Agents meet brings consumer problems ,ideas about
company & also discuss about new schemes

DEPOSIT MOBILISATION
o Deposits are the money which is invested for
specific period of time
o Deposits provides monthly & half year
dividends
o Deposit mobilization is a act of
ASSEMBLING, &PUTTING READINESS of
troops
o Deposit mobilization includes creating
business by follow-up in agents executives ,putting
group for
Readiness

DEPOSITS (TYPES)
• NCD(non-convertible debentures)
• STRAIGHT BOND
 • DOUBLE BOND
• VUNNATHI

• The deposited money will be invested in

companies
• Check & DD are accepted
• Filling of (15g) form.
• Sending to VijayWada
• Getting bond(10days)
• If bond last INDEMITY process will be followed
• NCD:- less interest & less risk
Minimum (6to9months) for foreclosing
• straight bond:-more interest based on risk
• minimum 5yrs for foreclosing
DOUBLE BOND-(SUBHIKSHA)
o Very high interest
o 0.25%interst paid to senior citizens
VUNNATHI NEW BOND
• High interest
• 2 to 6months for foreclosure
PROCEDURE FOR FORECLOSURE & MATURITY
 o If any consumer want to close his deposits in
the middle of the term he will paid with low
interest
o we can also recall dividends
o subscriber has to put a letter to manager to
foreclose(or) maturity

REGR.OFFICE WORK
• Auctions:-it is the process where subscribers
directly (or) indirectly participate in bidding
• Auction will be held at office of foreman at
schedule time
• Minutes of each auction will be recorded in the chit
minute book
• The minute book shall be signed by foreman &
subscribers(or)by their authorized agent
Types of auctions
• open auction by tender
• open auction by bidding
• When no bidder is forth coming. A lot will be
drawn from the non-prized subscribers minimum
discount equal to foremen commission
 • No chance to participate in auction if it is due (or)
Lien.

Total registration work

Every new chit has to be registered
Proposal sanction number (p.s)
Undertaking letter:-according to government we are
conducting business
Foreman address
Place
Chit value
Members & months
Form1:-application for p.s for conducting business
 Annexure: - statements of particulars
Total details of chit & company directors
Place & designation
Form: 1A-reply to foreman
Form1b:-giving authority for ps
Form10:-security for consumers
50% -bank amount
50%-fixed deposit receipt
form10:-certificate of sufficiency of security
Commencement
It is a process for conducting of auction (giving
date)
Endorsement
form2:-application for chit agreement
form3:- reply for application
form5:-subscriber list & fee details
form7:-central act (giving information to all subscribers)
form6:-certificate of commencement of chit
Assignment:-filling the vacancy
Removal:-14 days gap (eliminating from chit)
Substitution:-refilling the defaulter chit to another
Transfer:-in death case transfer to nominee

Accounts:-
Cash counter: - complete transaction takes place
Jo will hand over all vouchers & cash
BANK WORK
Total cash depositing & with drawings
Total 6 accounts
1a/c:-collection account (total collection amount will be
deposited)
We can refund 30 days prized money
2a/c:-refunding account (above 30 days prized money)
transfer from 1 a/c
3a/c:-all expenses account (transfer from 1 a/c)
4a/c:-Group Company account (deposit & life money)
5a/c:-inter branch account (other branch cash & checks)
6a/c:-new group fdr account

CASH RECEIVING & VERRIFICATION OF RECIPT

BOOKS
Collecting cash from the collection boys & verifying the
receipts
Verification of receipt books
Receipt books must be hand overed to company for
preparing statements

MONTHLY STATEMENTS
Monthly statements includes all transactions
Cash towards expenses
Interest collectable
Check bounce cash
Total collection cash
Suspense
VARIOUS BOOKS & REGISTERS
It includes all statements that had done in company
Rough cash books
Rough pass books
Prized money register
Inward & outward register
SRD register
Check returns
Cash denomination
Petty cash register
Asset register
Receipt book register
Check book register
Cheeb keys register
 Penalty register
Seized
Released
DDS
FI
Telephone
Special adhesive

DOCUMENTATION
Preparation of documents
Customer chit lift
Proposal form
Surety hand over camp
Scrutiny
Preparation of documents: - bye law a/c
Cash voucher
Bid payment
 No claim
Bid authorization
Promissory note
Guarantee bond
Chit agreement
Id proof
Salary attachment
PERSONAL SURITY:-government employee
IT payers
Liquid surety: - deposit (bond)
LIC (mortgage)
Chit lien (another subscriber chit)
Bond assignment
PROPERTY SURITY: - (URBAN LAY OUT)
Sale deed document
Link document (12 or 16yrs)
Ownership certificate
Tax receipts (recently paid)
Advocate opinion
VERIFICATION
Surety’s:-verifying guarantor details, pay pattern,
deductions
Property:-it contains all documents & collecting them
submitting to advocate
Multiple tickets:-subscriber having many other tickets

LEGAL
Sending of legal notices
If a prized & non-subscriber will not pay installments
above 4 months
Notices
Document requirement (CDD)
10000> (original suit)
10000< (small suit)

A/C COPY (allotting to advocate)

Suit
Samoans
 Vakalath
Writing statements
Counter
Issues
Trails
plaintiff evidence
defender evidence
Arguments
Hearing
Judgment
Decree
Ep- movable
Immovable

X-PARTY
Suit no
Samoans
Appearance
Ex party
Plaintiff evidence
Decree
SCUFF LEGAL
Three cases
1. Civil
2. Cheque bounce: - Notices
Ac knowledgement
Check
Check return memo
Sr no
Samoans
Appearance (if not) NBW
 Hearing
Trail
Client evidence
Defender evidence
Argument
Judgment

ARBITRATION ACT

Legal notice
Document requirement
client petition
Retire judge
Notice
Appearing (if not) evidence
Judgment crosses examination
Argument
Judgment

RECOVERY & FUND MANAGEMENT

Collection of money from NSB
SB
LEGAL
Daily follow up
Defaulters follow up
Guarantors follow-up
Fund management-managing money

VACANCY FILL-UP
It is a process for replacing other to the removed ticket
If a subscriber will not pay installments for 4 to 5 weeks he
will be removed from group
Then same group ticket will be given to others
15 days time will be given after removal

NOTICES

Intimations to defaulters regarding their dues

If it is prized notices to guarantors, defaulters
Notices acts as a evidence

SURITY FOLLOW –UP

Discussing with guarantors about defaulters and him to pay

due’s
Surety follow up creates pressure in guarantors & defaulters
Verification of guarantors address, things & place of working
(movable)
(Immovable)

Agents follow-up
Agents will follow up our customers to pay the dues regularly
Discussing with agents for creating business
Intimating about vacancies

INTREST COLLECTABLE VS COLLECTED

How much we have to collect the interests (arrears) & how

much we collected
This indicates performance of month
As a manager we have to know the daily collection and
conduct review meet with collection team & follow up them