What happens if you discontinue a Non-Prized chit?
Discontinuation of Chit may result in substantial loss, so it’s necessary to analyse the monthly income/expenses and select the correct chit group with a comfortable chit instalment. Unlike other investments, members in a Chit group come to an agreement where each member agrees to pay a pre-decided subscription every month till the agreed period. Hence cancellation/withdrawal from Chit is not allowed/permissible. There are two things/situations that will arise if you decide to discontinue from the Chit Group:
1. You can bring in a third person who is interested to subscribe/continue the chit in your place. If the prospect is acceptable to MPCIPL, we will consent for the transfer of chit from you (TRANSFEROR) to the new subscriber (TRANSFEREE). This is also called assignment (substitution) of chit. In this case, new subscriber must bring the total amount due as of now and the Old member (TRANSFEROR) will be refunded with his amount after deductions (if any) by MPCIPL after clearing the dues by the new member.
2. If you discontinue the Chit by not paying an instalment, the Foreman commission of 5% of the Chit value with GST will be deducted. The balance if any will be settled only after substitution (if the company gets someone) or completion of the Chit period, whichever is earlier.