About Chit Funds & Kuries
K-Chitty was built to foster trust and compliance in traditional savings schemes. We map unregistered Foremen out of the ecosystem and help subscribers make informed financial choices.
The Legal Framework
All legitimate Chit Funds (or Kuries) in Kerala are governed under the Central Chit Funds Act, 1982. This federal act mandates that every scheme must register its foreman, execute a security bond deposit with the state government, and obtain a specific Chitty Registration Number before accepting any subscriptions.
How Kuries Work
A Kuri is a unique financial instrument combining savings and credit. A group of members subscribes a fixed sum monthly. Each month, an auction is held. The member who bids the highest discount (or sacrifices the most dividend) gets the prize pool. The discount is divided equally among all members as a dividend, reducing their installment.
Savings vs borrowing
If you bid early in the chitty cycle, you receive a lump sum immediately (acting as a loan with interest paid via future discounts). If you wait until later months, you receive a higher payout with cumulative dividends, making it an excellent savings instrument with higher yields than typical bank deposits.
Subscriber Safety & Audits Checklist
1. Ask for the Registration No
Every active Kuri scheme is legally registered under a specific registration key (e.g. TSR/REG/2026/04). Do not pay installments to foremen who do not provide this reference.
2. Verify Collateral Requirements
When you win a bid auction, the foreman is legally required to verify sufficient security deposit collateral (land deed, gold, bank guarantee) before releasing the prize money. Understand these terms beforehand.
3. Audit Foreman Commission Fees
Legally under the Chit Funds Act, the maximum foreman charge/commission cannot exceed 5% of the total chitty value. Platform audit policies automatically flag listings charging above this limit.
4. Report Unlicensed Listings
Help keep the community safe. If you find a foreman listing misleading details or executing unregistered kuries, flag it or email us at safety@k-chitty.in.