Minister of State for Finance, Anurag Thakur moved the Chit Funds (Amendment) Bill, 2019 for consideration in the Lok Sabha today.<br />''<br />''The Bill seeks to amend the Chit Funds Act, 1982 which regulates chit funds and prohibits a fund from being created without the prior sanction of a state government.<br />''<br />''Moving the Bill, Mr Thakur said chit funds provide an important source of finance and avenue to save small businesses and households.<br />''<br />''He said although many people view chit funds negatively, they are for the people who have no other means of savings or taking credit from banks.<br />''<br />''The Chit Funds (Amendment) Bill, 2019 specifies various names which may be used to refer to a chit fund.<br />''<br />''The Bill additionally s a  'fraternity fund' and 'rotating savings and credit institution' to this list. The legislation seeks to increase the commission of a foreman to 7 per cent. Further, the Bill allows the foreman a right to lien against the credit balance from subscribers.<br />''<br />''<br />