2.Definition.-
In this Act, unless the context otherwise require,
-
(a) "approved bank"
means the State Bank of India constituted under
section 3 of the State Bank of India Act, 1955
(23 of 1955), or a subsidiary bank constituted
under section 3 of the State Bank of India (Subsidiary
Banks) Act, 1959 (33 of 1959), or a corresponding
new bank constituted under section 3 of the
Banking Companies (Acquisition and Transfer
of Undertaking) Act, 1970 (5 of 1997), or a
Regional Rural Bank established under section
3 of the Regional Rules Banks Act, 1976 (21
of 1976) , or a corresponding new bank constituted
under section 3 of the Banking Companies (Acquisition
and Transfer of Undertakings) Act, 1980 (40
of 1980), or a banking company as defined under
clause (e) of section 5 of the Banking Regulation
Act, 1949 (10 of 1949 ), or a banking institution
notified by the Central Government under section
51 of that Act or such other banking institution
as the State Government may, in consultation
with the Reserve Bank, approve for the purposes
of this Act;
(b) "chit" means
a transaction whether called chit, chit fund,
chitty, kuri or by any other name by or under
which a person enters into an agreement with
a specified number of persons that every one
of them shall subscribe a certain sum of money
(or a certain quantity of grain instead) by
way of periodical installments over a definite
period and that each such subscriber shall,
in his turn, as determined by lot or by auction
or by tender or in such other manner as may
be specified in the chit agreement, be entitled
to the prize amount.
Explanation.- A transaction
is not a chit within the meaning of this clause,
if in such transaction, -
(i) some alone, but not all,
of the subscribers get the prize amount without
any liability to pay future subscriptions; or
(ii) all the subscribers get
the chit amount by turns with a liability to
pay future subscriptions;
(c) "chit agreement"
means the document containing the articles of
agreement between the foreman and the subscribers
relating to the chit;
(d) "chit amount"
means the sum-total of the subscriptions payable
by all the subscribers for any installment of
a chit without any deduction of discount or
otherwise;
(e) "chit business"
means the business of conducting a chit;
(f) "defaulting subscriber"
means a subscriber who has defaulted in he payment
of subscriptions due in accordance with the
terms of the chit agreement.
(g) "discount" means
the sum of money or the quantity of grain which
a prized subscriber is, under the terms of the
chit agreement, required to forego and which
is set apart under the said agreement to meet
the expenses of running the chit or for distribution
among the subscribers or for both;
(h) "dividend" means
the share of the subscriber in the amount of
discount available under the chit agreement
for rateable distribution among the subscribers
at each installment of the chit;
(i) "draw" means
the manner specified in the chit agreement for
the purpose of ascertaining the prized subscriber
of any installment of the chit;
(j) "foreman" means
the person who under the chit agreement is responsible
for the conduct of the chit and includes any
person discharging the functions of the chit
and includes any person discharging the functions
of the foreman under section 39;
(k) "non-prized subscriber"
does not include a defaulting sub-scriber;
(l) "prescribed"
means prescribed by rules made under this Act;
(m) "prize amount"
means the difference between the chit amount
and the document, and in the case of a fraction
of a ticket means the difference between the
chit amount and the discount proportionate to
the fraction of the ticket, and when the prize
amount is payable otherwise then in cash, and
value of the prize amount shall be the value
at the time when it becomes payable;
(n) "prize subscriber"
means a subscriber who has either received or
it entitled to receive the prize amount;
(o) "Registrar"
means the Registrar of Chits appointed under
section 61, and includes an Additional, a Joint,
Deputy or an Assistant Registrar appointed under
that section;
(p) "Reserve Bank"
means the Reserve Bank of India constituted
under the Reserve Bank of India Act, 1934 (2
of 1934);
(q) "State Government",
in relation to a Union territory, means the
administrator of that Union territory appointed
by the President under article 239 of the Constitution;
(r) "subscriber"
includes a person who hold a fraction of a ticket
and also a transferee of a ticket or fraction
thereof by assignment in writing or by operation
of law;
(s) "ticket" means
the share of a subscriber in a chit.
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