Chit Fund Crisis in India Is the Result of Inefficient Indian Banking System, an Analytical Study

Chit fund schemes have historically been highly popular options for side investing when it comes to savings in Inida. Newspaper headlines about the failure of these funds and the misfortune of gullible investors frequently appear. Since there are thousands of cases of fraud, these media reports have not received much attention up until now. However, several scams involving thousands of crores of rupees have surfaced in recent years. Therefore, it is necessary to understand why people fall victim to these chit-fund scams. A customized questionnaire was used to gather data through convenient sampling to measure public knowledge about financial offense types, illegal chit-fund companies, and financial crime reporting. The findings showed that, compared to older individuals, the majority of investors, who are in the 18–35 age range, had a better understanding of chit-fund schemes. This study may further help to create laws and educate investors aimed at stopping and dealing with these types of scams.

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Chit Fund Crisis in India Is the Result of Inefficient Indian Banking System, an Analytical Study

Cited by 3 publications

References 9 publications

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