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Investor Perception Towards Organised and Unorganised Chit Fund
Subject area: Management and Commerce · Area of research: Management
DOI: https://doi.org/10.64388/IREV10I2-1722270
Abstract
Chit funds are a traditional savings and borrowing system widely used in many countries, particularly in India. They provide members with a convenient way to save money regularly while also offering access to funds when needed. Chit funds are broadly classified into organized and unorganized sectors based on their registration, regulation, and operational practices. Organized chit funds are registered under applicable laws and operate under the supervision of government authorities. They follow transparent procedures, maintain proper financial records, and ensure legal protection for subscribers. These chit funds promote financial discipline, reduce the risk of fraud, and provide greater confidence to participants. In contrast, unorganized chit funds operate without formal registration or regulatory oversight. They are usually managed by individuals or informal groups within local communities. Although they may offer flexibility and quick access to funds, they carry higher risks due to the lack of transparency, legal safeguards, and accountability. Participants in unorganized chit funds are more vulnerable to defaults, mismanagement, and financial losses.
Keywords
Chit Fund, Organized Chit Fund, Unorganized Chit Fund, Savings, Borrowing, Financial Inclusion, Financial Regulation, Subscriber Protection, Risk Management, Informal Finance, Registered Chit Funds, Consumer Protection, Financial Security, Transparency, Investment.
References
[1] Mudit Kapoor (2012) Chit Funds as an Innovative Access to Finance for Low-income Households First published online April 26, 2012 volume 3, Issue 3https:// 5
[2] Prof. Silpy Gupta (2014) HIT FUNDS AS AN INDIAN SAVING SCHEME IJBARR E - ISSN -2347-856X ISSN -2348-0653 Vol.2, Issue.5, April - June, 2014.
[3] Anupam Panigrahi (2015) Chit Fund Crisis in India Is the Result of Inefficient Indian Banking System, an Analytical Study Posted: 7 Nov 2015 June 5, 2014
[4] Pande Vikram (2015) A study of chit funds scams and government initiatives to safeguard investors in India Volume : 2, Issue : 11 First page : ( 37) Last page : ( 40) Print ISSN : 2349-6045.
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[6] Anjali K P (2023) PERCEPTION ANALYSIS OF THE NON -BANKING SERVICE INDUSTRY NDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023
[7] CMA Abhijeet S Jain (2022) A STUDY ON THE FINANCIAL LITERACY LEVEL AMONGST CHIT FUND INVESTORS August 2022\
[8] Manalel (2013) A Study Of Chit Finance In Kerala With Special Emphasis On Kerala State Financial Enterprises Ltd Bibliography
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[11] www.wikipedia.in
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How to cite this paper
@article{1722270,
author = {V Chetan Kumar},
title = {Investor Perception Towards Organised and Unorganised Chit Fund},
journal = {Iconic Research And Engineering Journals},
year = {2026},
volume = {10},
number = {2},
pages = {1010-1016},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1722270.pdf},
abstract = {Chit funds are a traditional savings and borrowing system widely used in many countries, particularly in India. They provide members with a convenient way to save money regularly while also offering access to funds when needed. Chit funds are broadly classified into organized and unorganized sectors based on their registration, regulation, and operational practices. Organized chit funds are registered under applicable laws and operate under the supervision of government authorities. They follow transparent procedures, maintain proper financial records, and ensure legal protection for subscribers. These chit funds promote financial discipline, reduce the risk of fraud, and provide greater confidence to participants. In contrast, unorganized chit funds operate without formal registration or regulatory oversight. They are usually managed by individuals or informal groups within local communities. Although they may offer flexibility and quick access to funds, they carry higher risks due to the lack of transparency, legal safeguards, and accountability. Participants in unorganized chit funds are more vulnerable to defaults, mismanagement, and financial losses.},
keywords = {Chit Fund, Organized Chit Fund, Unorganized Chit Fund, Savings, Borrowing, Financial Inclusion, Financial Regulation, Subscriber Protection, Risk Management, Informal Finance, Registered Chit Funds, Consumer Protection, Financial Security, Transparency, Investment.},
month = {August},
doi = {https://doi.org/10.64388/IREV10I2-1722270}
}