Showing posts with label Interest rates. Show all posts
Showing posts with label Interest rates. Show all posts

Tuesday, May 14, 2013

Chit funds, Probity and The People


The word “Chit fund” is making rounds in India very recently, mainly in the States of Bengal and Orissa (Odisha). Many people in both the states have been very keen in investing their money in “Chit funds” who have made big names, and, come up with promises to give back hefty returns for their investments. But all these promises have fallen flat when after running these financial institutions, they have not kept their promises and have shut down the shop to their investors once and for all.

There are people who are literate enough to know that they are investing for their greed, to earn more at higher rate of interests. But many poor people, having fallen in this trap, have lost their hard earned money, and are just out of their minds, know not what to do in such a situation with many committing suicide.
The word “Probity” has worked wonders for those running the “Chit funds”. But, always a word is not enough to be the Guarantor. Before investing into something that is totally Private, better to check up, and understand the pros and cons.

It is really a sorry state of affairs that people have become so money-minded these days. There are so many Nationalised and Government banks in this country where the Reserve Bank of India is there at the head and monitor. This builds confidence in people. Rate of interests are fixed and one can remain assured that their money is not running into some fraudulent hands. Knowing all this people make a fool of themselves, either their greed overcomes their mental balance or a thought to get rich overnight leads them to invest in “Chit funds” that promise high returns which to a cool mind can say, “This will bring trouble later on”.

Who is to blame when the “Chit funds” Dupe the people:

·         It can be the People
·         It can be their Ignorance
·         It can be their Temptation
·         It can be the Alluring Schemes
·         It can be their thought of Savings


The people who have lost their money have been trapped by the “Chit fund” promoters in their “Ponzi Schemes”. The warning bell has already rung and if after all this people don’t become aware they will run into trouble again.

Read more here: Chit FundPonzi Scheme