Chit means a transaction whether called chit, chit fund, chitty, kuri or by any other name by or under which a person enters into an agreement with a group of people that every one of them shall subscribe a certain sum of money( or a certain quantity of grain instead) by way of periodical installments over a definite period and that each such subscriber shall, in his turn, as determined by lot or by auction or by tender or in such other manner as may be specified in the chit agreement, be entitled to the prize amount.

A group of people participate in a Scheme to contribute fixed periodical amounts and distribute the amount so collected to each of the participants as determined by a draw or auction.

Chit funds are the Indian equivalent of the Rotating Savings and Credit Associations (ROSCA) that are famous throughout the world. ROSCAs are a means to save and borrow. At the same time, it is considered one of the best instruments to cater to the needs of the subscriber.


  • The chit company is registered under the Chit Act.
  • No chit shall be commenced or conducted without obtaining the previous sanction of the State government within whose jurisdiction the chit is to be commenced.
  • Surabhi is public ltd Registered Company with Rs. 10 crores authorised capital with paid up capital of Rs 4.85 crores.
  • Surabhi is managed by a board who have high caliber and integrity.
  • Surabhi is having deposits in various banks amounting to Rs. 33 crores.
  • Surabhi is having 10 branches in Bangalore and 6 branches are housed in own premises.
  • No black mark or complaint against Surabhi in the last 25 years.

Hence one can easily say your money in Surabhi is safe


There are a number of chit funds in India. In the past there have been instances of people investing in unorganised groups and unregistered firms and losing money, as many organizers have Cheated investors. However, many have benefited from chit funds as well. There are many reputed chit fund organizers, especially the bigger companies that bring some safety into play and SURABHI is one of them.

Yes, The company also a subscriber in all the groups as per Chit Fund Act.

Maximum bid permitted varies between 30% and 40% and minimum bid permitted is 5% of chit value as per chit act.

If the number of bidders offer in a monthly auction exceed one, Prize bidder will be decided by draw of lots.

Monthly installments can be paid by way of cash/cheque/DD either in any of the offices or at your doorstep to a representative from Surabhi. However the most preferred remittance shall be through RTGS/NEFT.

Surabhi is a registered company under companies act 1956 followed by chit fund Act 1982. Beside this it is run by professionals at corporate office and ten branches in and around Bangalore city since 1991.

Yes, Prized amount will be disbursed on furnishing adequate security such as

  • Bank Guarantee
  • By providing sureties acceptable to Surabhi
  • Mortgage of property of adequate value, normally 150% of future Liability.
  • LIC endowment policy

Prized bidder can receive the money within 30 days from the date of auction. This is subject to fulfillment of the procedures for sanctions and disbursement of the prize money.

Company will not deduct any tax other than S/T at source. The dividend earned in a chit is not taxable unless the bid amount is shown as loss in which case the dividend should be shown as revenue income by the subscribers.

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