Introduction
"Chit" is a Hindi word which basically means "Receipt" in the form of a small piece of paper. The formal English meaning closest to this is "a short letter or a note". A Chit fund is a kind of savings scheme practiced in India. For someone seeking a loan, it is a source of costly, but convenient, credit. For the small saver, it is an option that enforces monthly investment discipline. And for the un banked rural investor, it is a crucial step towards financial inclusion.
