CREATING ASUSTAINABLE BUSINESS

MANAGERIALIMPLICATIONS AND

CHALLENGES .

CONTENTS

ForewordPreface

IX

Xl

STRATEGIC MANAGEMENT AND CREATINGA SUSTAINABLE BUSINESS

1. Managerial Decision-Making Style: India, Bangladesh, and Finland- Cultural Side of the Game 3Shaidul Kazi

2. Responsible Business and Green Economy: A Study on Indian Business Initiatives 10Rajiv R. Thakur

3. Corporate Environmental Sustainability in Developing Economies 18Madhu Khanna

4. Business Ethics - A Tool for Sustainable Business 22Ganga Kumar Binha and Sanjiv Kumar Sharma

5. Thinking Beyond Sustainable Development: A Critical Appreciation ofAlternative Indicator Initiatives 25Prabhat Pankaj

HUMAN RESOURCE AND SUSTAINABLE DEVELOPMENT

6. Thought Leadership in Workplace Wellness: Shifting fromOperating Efficiency to Sustainable ValueAnthony E. Smith, Marcy Engle, B.j Miller and Andrew Miller

7. Satisfied Employee: The Key to Sustainable Business(A Case Study of Bank of Baroda in Rajasthan)Parul Tyagi

8. Role of HR in Building Organizational SustainabilityCharu Chaturvedi

9. Ethical Leadership and Sustainble Develpoment: Challenges and ProspectsSunita Sharma, Sudhanshu Lahari and Sonali Modi

35

42

48

55

ECOLOGICAL, SOCIAL AND ECONOMIC SUSTAINABILITY

10. Adaptation to Climate Change and Shore up Sustainable Development inDeveloping Countries: Role of Insurance SectorSabrina Tazreen and Chandra Das

11. Impact ofMNREGA on Sustainable Development of Village Economyin RajasthanMrutyunjay Swain and Shreekant Sharma

12. Taking Rural India Forward: The Experience of 'Wakod' VillageMamtaDahad

61

68

75

VI Contents

13. Sustaining Health and Well-Being - A Hedonic Wage StudyPragati Jain and Prerna Jain

14. The Public Private Partnership for Sustainable AgricultureSwati Utreja and Madhu Sharma

15. Socio-Economic Development Through Tourism in IndiaMukund Chandra Mehta and B.P. Bhagat

16. Socially Responsible Investing in Emerging MarketsRashmi Khatri

17. Sustaining the Profits: A Panel Data and Technical Efficiency Analysisof Economic Susta inabilityJyothi Kumar and Amalendu Jyotishi

18. Watershed Management for Empowerment of Tribal Women:A Pathway to Sustainable DevelopmentRupali Satsangi and Ayan Hazra

83

88

94

99

105

III

ENVIRONMENTAL SUSTAINABILITY THROUGHENGINEERING PRACTICES

19. Generation of Clean Electricity from Poultry Litter in IndiaShalini Mathur and Sanjeev Prashar

20. Waste to Wealth - Effective Solid Waste Management byCh iplun Municipal CorporationElvira Pinto e Desouza

21. Environmental Sustainability through Engineering Practices- The Lean Construction WayK Natarajan, Jabraj Singh and Indira Mohan

121

129

134

SUSTAINABILITY THROUGH OPERATIONS MANAGEMENTAND SUPPLY CHAIN

22. Design of Sustainable Supply Chains 143Petr Fiala

23. Are the Power Sources Equally Effective to Channel Partners?A Study in Indian Context 149Koushick Roy and Kaushik MandaI

24. Sustainable Supply Chain Management: Issues and Risks inEmerging Business Environment 156Pramod Kumar Gupta and Tanuj Nandan

25. The Impact of Small, Medium and Large Organization Size inImplantation of Green Supply Chain Management in India 163Lokesh Vijayvargy and Gopal Agarwal

26. Corporate Sustainability and Sustainable Business: The Role of Corporate inCommunity Development - A Case Study of Tata Steel 170Manosmita Mahapatra and C. Aruna

Contents Vll

27. Flexibility in Supply Chain and its Measurement using Fuzzy AnalyticHierarchy ProcessG.P. Kurien and M.N Qureshi

176

MARKETING AND SALES MANAGEMENT WITHSUSTAINABLE DEVELOPMENT

28. A Study on Effect of Puffery in Response to Television Advertisements 187Vijay Kumar Pandey and Chitra Kasana

29. A Cross National Comparative Study on Factors Influencing AutomobilePurchase Decision between Consumers in India and USA 194fyotirmoy Samanta and Neelotpaul Banerjee

30. Impact of Green Marketing on Consumers: Opportunities and Challenges 202Farah Ahmad and Farah Zehra

31. Environmentally Concerned Consumer Behavior: Insights fromIndian Consumers 209Pradeep Kautish

32. Managing Channel Training Costs for Multiple Origination Platformsin Auto Finance: Case of an Indian NBFC 219Mohit Agrawal and Abhishek Raizada

33. Television Reality Shows and Understanding Audience Voting Behaviour:A Study with Reference to Zee TV Dance India Dance 228Hirapunyatirtha Swain, Punit Kumar Mishra and Bibhuti Bhusan Acharya

SUSTAINABILITY ISSUES IN BANKING AND FINANCE

34. Integration of Official Statistics and Corporate Accounting toMeasure Business SustainabilityJose L. Pino and Teresa Caceres

35. A Critical Study ofPmry and PMEGP Schemes Turning NPA inMaharashtra State During the Years 2006-2011Deepali G. Bankapure and Vishwas Wadekar

36. Sustainability Issues for Future Banking - Implementation of BASEL IIfrom Bangladesh PerspectiveChandra Das and Sabrina Tazreen

37. Technological Innovations in Banking ProcessesVivek Marathe

38. Emerging Trends in E-BankingM.L. Sharma

39. Chit Funds Auction Pricing ModelS.S.N Raju Indukoori

40. Comprehensive Study of Operational Failures in Banking- With Special Reference to NRI CustomersShuchi Singhal

237

244

251

259

265

269

276

Vlll Contents

SUSTAINABLE PROCESS USING INFORMATION TECHNOLOGY

41. Combined Approach to Steganography Including Key Based Encryption withPermutation and XNOR Operation and Hiding Encrypted Data in Image 285Neeraj Saxena

42. Sustainable Business Models using Smart Phones 292Durgansh Sharma

ENTREPRENEURSHIP AND SUSTAINABLE BUSINESS

43. Micro Entrepreneurship as a Sustainable Business Model throughSelf Help GroupB. Kishor and S.K Hota

44. Strategic Issues in Developing Innovative Entrepreneurial Culture in IndiaA.K Sharma

45. Responsiveness of Community and Wedding Planners to Comply withSustainable Wedding ManagementNandini Sharma and Jyoti Gogia

46. Creating Sustainability in Handloom IndustryRachana Goswami and Ruby Jain

47. Creativity and Innovation Paves Way for SustainabilityMd. Moaz Ali and Neda Perwez

48. Exploration of New Dimensions for Sustainable Business by CultivatingEntrepreneurial SkillsSunita Seth

MANAGEMENT EDUCATION FOR GLOBAL SUSTAINABILITY

49. Gap Triangle between Faculty, Beginners, and Experienced Students onthe Quality of Hospitality Management Program: An examinationKaushik MandaI and Chandan Kumar Banerjee

50. The Need ofInnovation in Management Education Today: To BuildGlobally Responsible ManagersVipul Singh and Arvind Kumar

51. Responsible Business Education for Sustainable Business Enterprises:Integration of Leadership, Ethics and Social ValuesJyoti Gogia and Nandini Sharma

ARTICLES

52. Leading Organizations toward Sustainability in a Full Earth EconomyJames M Leaman

53. Being Eco-Friendly by Designing for RemanufacturabilityDilip Chhajed, Nick Petruzzi and Wenjun Gu

Author Index

301

308

312

319

325

330

339

347

352

363

364

365

CHIT FUNDS AUCTION PRICING MODEL

S.S.N. Raju IndukooriIMTNagpur

E-mail: rajuindukoori@imtnag.ac.in

ABSTRACT

Chit fund is one of the oldest financial instruments in the world originated from India fulfilling short-termborrowing and investing needs of individuals and business entities. It also has the potential to serve corporateworking capital requirements and park idle funds as investments. This paper evaluates the pricing methodand proposes a pricing model to arrive at a decision to choose between Corporote Chit Fund and Other Shortterm borrowing channels.

Introduction

It is similar to a mutual benefit schemes or a kittyparty. It is also known as chitty, cheery, kuriand boli. It can be defined as a series of financialtransactions for mutual benefit of organizedmembers through the status of "association ofpersons" with and an agreement between eachmember of the fund and the foreman who is theinitiator, organizer and caretaker of the fund.Chit fund is organized with foreman as the keyperson in initiating, operating and settlement offunds for every month. It has a limited number ofmembers or subscribers including foreman. Thechit fund exists for a period of time usually inmultiple of months. In terms of its objectives andassociation it is similar to Rotating Savings andCredit Association (ROSCA) in USA and othercountries.

It is the most ancient system of lending andborrowing needs even before banking. It is as oldasagriculture in India which originated as self-helpamong small farmers with grains. After thedevelopment of banking system chit fund lost itsidentity as lending and borrowing tool. Modernchit fund had unique influence in south Indiaasand alternative savings tool known to everyhousehold. The turnover of chit funds in India

in 1986 was ~ 81.6 billion' and it grew for thelater decades. 'Model Chit Fund' was the firstcompany to launch one crore rupees chit fund forcompanies for their short term funding.

Working of a Chit Fund

Chit amount, duration and number of membersare pre-determined. Number of members andnumber of months in the chit period are the same.Chit members meet every month on day wherethe date and the day are mentioned for all themonths. One of the members would be eligible totake the chit amount every month.

Chit Allotment and Lucky Draw

To justify the demand for the chit fund from allthe members, names of the members are writtenon a small piece of paper (Chit) and one chit istaken. The person with the name in the chit fromthe lot is chosen as the beneficiary for the monthand his name will not be considered for othermonths. As the months pass number of names inthe chits every month would come down as theperson who had taken the chit fund earlier is noteligible to take the fund again.

I Asian Development Bank's Reporr.

270 Creating a Sustainable Business: Managerial Implications and Challenges

Bidding - Winner has to Loose

Auction would be invited from all the members totake the chit fund. The auction is for the discountamount on the chit fund. Whoever bids highestauction for the discount amount he/she wouldbe awarded with the chit fund. The auction setsthe platform and competition to loose more. Thesuccessful bidder cannot participate in the laterauctions. Bid amount is to a minimum of 5%and maximum is decided based on the nature ofmembers and demand for the chit fund whichmay range from 30% to 40% of the chit value.In case there is more than one member willingto bid for more than cap percentage, lots aredrawn for all the interested members willing totake nearest month chit fund. The bid amountwould be high in the initial months and low inthe last months. In the case of a lucky draw ofname from the chits, the members have to paythe monthly subscription every month. Whereas in the case of auction, the subscribers have topay the subscription amount less he the discountamount equated to all the members. Due to thisthe members who wouldn't go for auction wouldtreat the monthly subscription as investment asthey want to take their money back at the end ofthe chit period or go for auction in the monthswhich are close to the closure of the chit fund asthe bid amounts very low.

Benefits of Chit Fund

The first month's chit amount would go tothe organizer or the company without any chitprocess or competition or auction. The companycharges organizing fee which is usually 5% ofthe chit value and deducted from the dividendsto be paid to the subscribers. For the membersit is easy to borrow and flexible in terms ofcost of borrowing and timing. It is similar to aSystematic Investment Plan (SIP) in a mutualfund and recurring deposit (RD) of Commercialbanks and Post offices. Higher the bid amounts

in the auctions, high are the dividends and moreare the returns which are safe and well regulated

Borrowers in Chit Funds

More than investors, chit fund is more borrowersoriented as it fulfills the borrowing requirements.Borrowers are the members who are in desperateneed for funds in a specific month and are willingto take higher cost of borrowing. Typically fiftyto sixty six percent of the members are borrowersand rests of them are investors. Chit fund is morerelevant and important source of funding forSMEs due to the fact that all banks doesn't giveeasy loans to SMEs as they don't have good trackrecord and proper accounting system. Borrowerswould get full amount of the chit after biddingwithout any deductions or charges.

Investors in Chit Funds

An investor in the chit fund is the member whohad joined the chit fund not for borrowing bybidding through auction but to remain till the lastmonth and take the full chit amount. In this casethere would be only one investor and reset of themembers (n-I) would be borrowers. In addition tothe last members, the members who would like tobid for the last twenty five to thirty three percentof the months are also considered/ as investors.Because these members would bid for the chitamount as the bid amount is very low comparedto the previous bids. This implies that instead ofwaiting for the last month it is better to take thechit fund with low bid in the previous months.Investors get five percent less of the chit fundthan what they are supposed get as the chit fundcompany deducts five percent as the commissionfrom dividends.

2 According to the collected views of biddingmanagers, agents, recovery officers of MargadarsiChit fund Limited.

Chit Funds Auction Pricing Model 271

Chit Fund Regulation

First enactment on chit fund was made beforeindependence in 1914 by government ofTravancore. Andhra Pradesh was the first stateafter independence to pass an act on chit fund in1973 followed by Karnataka in 1984. Currently allthe chit funds are regulated directly by RegistrarChits in respective states. Central governmentintroduced an act on chit fund in 1982. Inaddition to governments acts chit fund alsocomes under 'Transfer of Properties Act' See 69.Chit funds are also regulated by RBI as they comeunder NBFC category of RBI. Joint Registrar ofChits ORC) is a statutory body to control chitfund companies and safeguard the interests of thesubscribers of the chit fund. The company shouldhave commencement certificate from JRC to starta group. Chit operator has to file regular returnswith JRC. For each fund the chit fund companyhas to deposit Fixed Deposit Receipt (FDR) witha bank favoring JRC as security which can bewith drawn after the closure of the particular chitfund of the company. In case the chit operatorbankrupts all the FDRs and immovable propertiesof the chit fund company or operator are takenover by JRC and distributed to the subscribers ofthe chit fund according to the chit fund act.

Misapprehensions of Chit Fund

In addition to the organized and well regulatedchit fund industry there also exits unorganizedchit funds which is known for irregularities anddefaults on both organizer and members pointof view referring it as 'cheat fund'. Some of theparticipants who are willing to take membershipfor their borrowing requirements throughchit fund try to avoid the same as they feel thebidding in auction is manipulated and the chitfund is awarded to influential members whichis not true as the bidding process is structuredand transparent according the regulations. It isalso perceived that the chit funds impose hidden

costs, which is not true in reality. The only costin chit fund is the commission the company takesfrom the members. In case of delay in paymentsnominal charges are imposed which would bestated in the legal document before becoming amember.

DATA &METHODOLOGY

To analyze the desired expectations and results afifty month/members, ~ 25,00,000 chit fund ofMargadarsi Chit Private Limited was collectedfrom one of the members of the chit fund whichis an SME. Name of the subscriber and otherdetails were kept confidential as the subscribingcompany was not willing to disclose.

Table 1: Chit Fund Derails

Chit Fund Company Margadarsi Chir FundLimited

Subscriber SME

Chit Value ~ 25,00,000

Bid Cap 35%

Bid Cap Momhs 10 Momhs

Method of Bidding Auction

Auction Day 2nd Sunday of every momh

Price Determination

The amount of bidding is based on the firms needfor capital requirements and accordingly expectedcost of bidding. The discounted value (presentvalue) of the chit fund for the remaining numberof months with a given cost of bidding should bethe criteria to go for bidding which may differfrom member to member and month to month.Following is the equation depicting cut-off forbidding.

Bid Price ~ Chit Value - Net Chit ValueNet Chit Value 2 Present Value of the Chit FundNCV2 PVCF

NCV = Chit Value-Bid Price (1)

272 Creating a Sustainable Business: Managerial Implications and Challenges

Cost of Bidding Calculation

To arrive at cost of bidding for every month,the IRR approach is used which equates NetChit Value (NCV) at the end of chit term, i.e.~ 2,375,000 wid~ compounded (NCV) for amonth using the following equation.

NCV = NCV (l+k)(n-i)n I

~ 2,375,000 = NCVI

This model is useful for bidders to arrive atrequired rate of return and target bid amountbefore participating in auction. The model toarrive at cost of bidding in this study helps theexisting chit members of a chit fund to know theexpected cost of bidding for a given NCV andtarget bid amount. It also helps to make a decisionon choice of chit fund and traditional alternativesfor short term funding based on historic cost ofbidding calculations.

Dividend Calculation

Bid value which is net of commission to thecompany is equally distributed to all the memberfor the respective months is termed as dividend

ivid d Bid Amount - CommissionDivi en =----------Total Number of Member

Net Bid Value

Total Number of MembersNBV

n

UMI Calculation

Un-equated Monthly Installment (UM!) is thenet of Monthly premium and dividend. UMIis calculated after deducting the dividend fromGross Monthly Installment (GMI) represented inthe following equation.

UMI = GMI - Dividend

As an alternative to equation (1), the dividend

can be calculated as the net of Gross MonthlyInstallment (GMI) and Unequaled MonthlyInstallment (UM!) which can be expressed as

Dividend = GMI - UMI

(2)

Return Calculation (UMI IRR)

To have a fair idea on monthly change individend, monthly IRR is calculated by equating~ 50,000 with compounded value of UMI for agiven month using the following equation.

GMI= UMI(1 + k)(n-i)I

~ 50,000= UMI(1 + k)(n-i)(5)

Return on chit fund to an investor iscalculated by using Internal Rate of Return (IRR)approach which equates the compounded value ofall UMIs to net chit value (NCV) to be received

n

at the end of the chit term. The equation is statedas follows

n

NCVn = LUMIi (1 + k)' (6)The sum of compounded value of all

individual UMIs is equated to the Net Chit Value(NCV) at the end of chit term, i.e. ~ 2,375,000(~ 125,000 commissions is deducted from chitvalue). We substitute ~ 2,375,000 for NCV in

n

equation (3) to get UMI IRR as follows.

(3)

n

~ 2,375,000 = LUMIi (1 + k)'i=l

Results and Discussions

(4)

The results of the analysis of the data are presentedin Table 2. The results show monthly bid amount,NCV, dividend and UMI for respective months ineach row represented with a month number, nameand year. The cost of bidding (2) in borrowers'perspective and UMI IRR (5) in investors'perspective and are calculated for the respectivemonths. Cost of bidding through equation (2)is the primary proposition in this model and the

Chit Funds Auction Pricing Model 273

Table 2: Analysis of Chit Fund Data and its Results

Month Month BidNCV Cost of Bidding Dividend

UMIMonthly UMIIRR

No. and Year AmountEquation in % Equation Equation (4)

in %(J) Equation (2) (3) Equation (5)

1 Sep-07 125,000 2,375,000 0.00 0 50,000 0.002 Oct-07 875,000 1,625,000 9.33 15,000 35,000 8.773 Noy-07 875,000 1,625,000 9.52 15,000 35,000 8.954 Dec-07 875,000 1,625,000 9.73 15,000 35,000 9.14

5 Jan-08 875,000 1,625,000 9.94 15,000 35,000 9.346 Feb-08 125,000 2,375,000 0.00 0 50,000 0.007 Mar-08 875,000 1,625,000 10.39 15,000 35,000 9.778 Apr-08 875,000 1,625,000 10.64 15,000 35,000 10.009 May-08 875,000 1,625,000 10.89 15,000 35,000 10.23

10 Jun-08 875,000 1,625,000 11.16 15,000 35,000 10.4811 Jul-08 875,000 1,625,000 11.14 15,000 35,000 10.7512 Aug-08 875,000 1,625,000 1l.73 15,000 35,000 1l.02

13 Sep-08 676,100 1,823,900 8.37 11,022 38,978 7.8914 Oct-08 592,000 1,908,000 7.12 9,340 40,660 6.73

15 Noy-08 585,000 1,915,000 7.20 9,200 40,800 6.8016 Dec-08 617,000 1,883,000 7.99 9,840 40,160 7.5417 Jan-09 645,000 1,855,000 8.75 10,400 39,600 8.2618 Feb-09 604,000 1,896,000 8.22 9,580 40,420 7.7619 Mar-09 594,000 1,906,000 8.28 9,380 40,620 7.8220 Apr-09 601,500 1,898,500 8.70 9,530 40,470 8.2121 May-09 600,000 1,900,000 8.96 9,500 40,500 8.4622 Jun-09 616,000 1,884,000 9.62 9,820 40,180 9.0823 Jul-09 555,000 1,945,000 8.59 8,600 41,400 8.1224 Aug-09 602,100 1,897,900 10.01 9,542 40,458 9.4525 Sep-09 355,000 2,145,000 4.71 4,600 45,400 4.4626 Oct-09 348,000 2,152,000 4.74 4,460 45,540 4.4927 Noy-09 357,000 2,143,000 5.15 4,640 45,360 4.8828 Dec-09 285,100 2,214,900 3.65 3,202 46,798 3.4629 Jan-10 342,000 2,158,000 5.24 4,340 45,660 4.9630 Feb-lO 343,500 2,156,500 5.53 4,370 45,630 5.2431 Mar-10 335,000 2,165,000 5.57 4,200 45,800 5.2832 Apr-10 315,000 2,185,000 5.28 3,800 46,200 5.0033 May-10 282,000 2,218,000 4.57 3,140 46,860 4.3334 [un-IO 196,000 2,304,000 2.14 1,420 48,580 2.0435 Jul-lO 240,000 2,260,000 3.73 2,300 47,700 3.54

36 Aug-l0 256,000 2,244,000 4.55 2,620 47,380 4.3137 Sep-IO 277,000 2,223,000 5.68 3,040 46,960 5.3938 Oct-l O 235,000 2,265,000 4.39 2,200 47,800 4.l6

274 Creating a Sustainable Business: Managerial Implications and Challenges

Month Month BidNCV Cost of Bidding Dividend

UMJMonthly UMJ JRR

No. and Year AmountEquation in % Equation Equation (4)

in %(1) Equation (2) (3) Equation (5)

39 Nov-IO 226,000 2,274,000 4.35 2,020 47,980 4.1340 Dec-lO 260,000 2,240,000 6.40 2,700 47,300 6.0741 jan-I l 235,000 2,265,000 5.70 2,200 47,800 5.4142 Feb-ll 215,000 2,285,000 5.16 1,800 48,200 4.9043 Mar-I l 195,200 2,304,800 4.51 1,404 48,596 4.2844 Apr-I l 125,000 2,375,000 0 0 50,000 0.0045 May-II 125,000 2,375,000 0 0 50,000 0.0046 jun-l l 125,000 2,375,000 0 0 50,000 0.0047 Jul-ll 125,000 2,375,000 0 0 50,000 0.0048 Aug-l l 125,000 2,375,000 0 0 50,000 0.0049 Sep-l l 125,000 2,375,000 0 0 50,000 0.0050 Oct-II 125,000 2,375,000 0 0 50,000 0.00

Mean Cost of bidding of all months = 5.95% Using equation (6) UMI IRR = 4.31 %

mean cost of bidding for all months is calculatedto arrive at an indicative cost of bidding for a chitfund which can be compared to other fund ofthe same chit fund company or other company.Similarly Monthly UMI IRR through equation(5) is indicative and has no significance in thismodel. UMI IRR through equation (6) is thesignificant calculation in this model.

According to equation (6), equating the net

chit value of~ 2,375,000 with the sum of all fiftycompounded UMIs we get an IRR of 4.31 %. Itmeans a subscriber who didn't bid for NCV inany of the fifty months and waited till the endof the fiftieth month to receive ~ 2,375,000 bypaying all the UMIs got an IRR of 4.31 %.

Table 2 gives the list of cost of bidding inthe fifth column which is relatively higher in theinitial months up to twelfth month and came

14.00

6 21 26 31 46

12.00

1000

8.00

6.00

4.00

2.00

0.00

1611 36 41

FIGURE1: Cost of Bidding in Percent

Chit Funds Auction Pricing Model 275

down to lowest in the mid of the chit fund term.It was zero in the last five months as there are noactive bidders for the NCV. Zero IRR for first andfifth month indicate that the chit value is takenby the chit fund company without any bidding.

The above figure shows the movement ofmonthly bidding IRR for the fifty month chitfund. Monthly bidding IRR in percentageis shown on Y axis and number of months isrepresented on X axis.

Conclusions

Unlike fixed rate and floating rate of interestoffered by banking, the cost of borrowing orreturn on investment in chit fund declines as thenumber of remaining months decrease. In theinitial months the cost of borrowing is less thanor equal to prevailing bank lending rates. Usingthis model, the existing and prospective membersof the chit funds would benefit as they wouldknow the historic or expected cost of bidding and

make a decision after comparing the same withthe existing traditional borrowing sources.

References

1. Asian Development Bank's Reports.2. BesleyTimothy, Stephen Coate and Glenn Loury,

"The Economics of Rotating Savings and CreditAssociations", The American Economic Review,Vol. 83, Issue 4, 1993.

3. Business Standard, "Gates Foundation to ExploreFinancial Inclusion", 19th Jan 2010.

4. C.S. Rajas Bodhas, "Chit Fund: AmazingFinancial Instrument - Made In India", www.rajasbodasandassociates.com

5. Preethi Rao, "Chit Funds - A Boon to the SmallEnterprises" Working Paper Series, IFMR, Jan2007.

6. Simon Rottenberg, "The distribution of chitfund gains and losses" The Journal of Business,Apr 1968, Vol 41, Issue 2, Pages 246-250.