The Y S Jagan Mohan Reddy government in Andhra Pradesh is making efforts to stifle the Margadarsi Chit Funds promoted by media baron Ch Ramoji Rao. To achieve this, the government has brought in a new policy.
Revenue Minister Dharmana Prasada Rao announced on Monday that the state government was taking measures to ensure that chit fund business in the state is conducted in a transparent manner.
The government is launching e-chits, a new electronic application, to make chit fund business transparent through an entirely online process.
According to the new policy, all transactions of chit fund companies should be done only online. The Andhra Pradesh Revenue, Registration and Stamps department developed the new application to this effect.
The minister stated that chit fund subscribers would be able to know whether their money in the schemes is safe or not. The new policy is formulated only to ensure that the subscriber is not cheated.
Dharmana said the Registration department would monitor the schemes online to grant clearance, and it is mandatory for chit fund companies to comply with this. This applies to the chit fund companies already registered, and they should comply with the new policy.
