Chit Funds (Amendment) Bill, 2019

Current context: The Lok Sabha has passed the Chit Funds (Amendment) Bill, 2019 by voice vote on 21st Nov 19.

 

• The Bill seeks to amend Chit Funds Act, 1982.
• The Chit Funds Act, 1982 regulates chit funds and prohibits a fund from being created without the prior sanction of a State Government.
• The amendment has been made to streamline operations of chit funds that are popular among low-income families in India, as it offers both access to funds and save option and to protect the interests of investors.
• The provisions prescribed in the Chit Funds (Amendment) Bill, 2019 are:
• The prescribed ceiling of aggregate chit fund amount for individuals has been raised from Rs 1 lakh to Rs 3 lakh.
• The prescribed ceiling of aggregate chit fund amount for the firms has been raised from Rs 6 lakh to Rs 18 lakh.
• The word chit amount is substituted with terms gross chit amount, dividend and prize amount with the share of discount and net chit amount.
• The maximum commission of a foreman has been increased from 5% to 7%.

Question: 

The Chit Funds (Amendment) Bill, 2019 contains the provision that the prescribed ceiling of aggregate chit fund amount for individuals will be_____
a. Rs 1 lakh
b. Rs 2 lakh
c. Rs 3 lakh
d. Rs 4 lakh
e. Rs 6 lakh