Chit Funds in Tamil Nadu — A time-tested tradition of community savings
Chit funds are one of Tamil Nadu's most deeply rooted financial institutions, blending informal trust with structured savings. A fixed group of members contributes a set amount every month; each cycle, one member collects the entire pooled sum — chosen by auction or lottery — until everyone has received their turn. Regulated by the Tamil Nadu Chit Funds Act and overseen by the state's Registrar of Chits, they serve millions of households and small businesses that find traditional banking either inaccessible or too rigid