Amendment status not verified — confirm the current text below against the official source.
In this Act, unless the context otherwise requires----- (1) "approved bank" means a bank approved by' the State Government for the purposes of' this Act ; (2) "chit" means a " transaction, whether called chit fund, chit, kuri, or by any other name, by which its foreman enters. Into an agreement with a number of subscribers that everyone of them shall subscribe a certain sum or a certain quantity of grain or of any other goods by periodical installments for a number of specified periods equal to the number of subscribers and that each subscriber at some of. them in his or their turn as determined by lot or by auction or by tender or in such other manner, as may be provided for in the agreement, shall be entitled to a prize amount ; Explanation- A transaction is not a chit within the meaning of this, clause if in such transaction--- (a) some alone, but not all, of the subscribers get the prize amount without any liability to pay future subscriptions , or (b) all the subscribers get the whole of the chit amount by turns with a liability to pay future subscriptions :