Association demands action against chit fund operations

The association of small savings development officers has demanded administrative and legal steps against chit funds operating illegally in West Bengal. They also demanded a list of chit funds be published by the state government. The association's president Nabakumar Das said because of illegal operation of chit funds in the state, the small scale savings have drastically fallen. He said he has heard that a branch of the finance department which looks into illegal operation of chit fund has directed the authorities in districts to make a list of chit funds and their operations.

The gross collection on account of small savings has been steadily declining in West Bengal due to mushrooming of chit funds. It declined to Rs 23,000 crore in 2011-12 from Rs 32,000 crore in 2010-11. Earlier this month, The Indian Express had pointed out that a cut in commission of post office agents and inadequate infrastructure of the small scale directorate are the two main reasons because of which chit funds have flourished in West Bengal.

"We want immediate filling up of small saving development officers who play a vital role in channelising public money in small saving schemes. About 300 such posts are still vacant," Das said.

ALSO READ

Financial, retirement planning among NRIs has critical gaps: Standard Life NRI Wealth Study

50% sex workers lost life's savings in India's chit funds-type Ponzi schemes

New bill on protecting investor interest to have more teeth

Get a fix on fixed deposits