Subscription to chit funds by Non-Resident Indians - RBI Circular
AS per the existing provisions, no person resident outside India shall make investment in India, in any form, in a company or partnership firm or proprietary concern or any entity, whether incorporated or not, which is engaged or proposes to engage "in the business of chit fund”.
The guidelines for subscription to the chit funds have been reviewed in consultation with the Government of India and RBI has decided to permit Non-Resident Indians (NRIs) to subscribe to the chit funds, without limit, on non-repatriation basis subject to the following conditions:
i. The Registrar of Chits or an officer authorised by the State Government in accordance with the provisions of the Chit Fund Act in consultation with the State Government concerned, may permit any chit fund to accept subscription from Non-Resident Indians on non-repatriation basis;
ii. The subscription to the chit funds shall be brought in through normal banking channel, including through an account maintained with a bank in India.
AP (DIR Series) Circular No.107/RBI., Dated: June 11, 2015