Don't kill the chit fund; Saradha wasn't a chit anyway

Abstract

The media has confused the Saradha scam with a chit fund scam. Nothing could be further from the truth and many chit funds are truly above board and enabling financial inclusion. It is very unfortunate that the debate on the Saradha multi-layer marketing scam is again and again being discussed as a chit fund gone bad. The solutions being bandied about call for banning all chit fund activities in the country. This has been suggested by none other than the Parliamentary standing committee on financeheaded by the BJP's Yashwant Sinha, former Finance Minister. I read the news with a sense of shock since the scam has nothing to do with chits. Though there is no denying that what happened with the Saradha Group and other multi-level marketing/Ponzi companies has robbed millions of people of their savings, putting the blame on chit funds is like rubbing salt in the wounds. Banning chit funds is like calling for the amputation of the left leg when the right one is infected. Read more at: https://www.firstpost.com/business/dont-kill-the-chit-fund-saradha-wasnt-a-chit-anyway-804601.html