The Chits Funds Act,1982
86. Banks not to conduct chit business.
(1) Notwithstanding anything contained in this Act, no bank shall commence or carry on chit business after the commencement of this Act, no bank shall commence or carry on chit business after the commencement of this Act.
(2) Where a chit had been started by any bank before such commencement, such chit may be continued after such commencement until it is completed, and the provisions of the chit agreement and such laws, if any, as were applicable to it immediately before the commencement of this Act shall apply to such chit. Explanation;-For the purposes of this section “bank” means an approved bank or a cooperative bank as defined in Cl.(b-ii) of Sec. 2 of the Reserve Bank of India Act.
