Cabinet Clears Proposal To Change Chit Funds Act

The Cabinet yesterday cleared a proposal for amendment of the Chit Funds Act and of the Narcotic and Psychotropic Substances Act.

The changes proposed in the Chit Funds Act include allowing an increase in the amount of discount to be foregone by subscribers and expand the scope of securities acceptable as deposits.

The limit for individual deposits has been increased from Rs 25,000 to Rs 1 lakh. While the limit for associations is now between Rs 1 to 6 lakh, it is unchanged for companies at 10 times of their net worth.

A Cabinet note says the amendments to the Narcotic Drugs and Psychotropic Substances Act of 1998 are because there are