Banks not to conduct chit business
Section 86 of the Chit Funds Act, 1982 deals with banks not to conduct chit business. Notwithstanding anything contained in this Act, no bank shall commence or carry on chit business after the commencement of this Act. The Act came into force on 02 Apr 1984.
(1) Notwithstanding anything contained in this Act, no bank shall commence or carry on chit business after the commencement of this Act.
(2) Where a chit had been started by any bank before such commencement, such chit may be continued after such commencement until it is completed, and the provisions of the chit agreement and such laws, if any, as were applicable to it immediately before the commencement of this Act shall apply to such chit.
Explanation.-- For the purposes of this section "bank" means an approved bank or a co-operative bank as defined in clause (bii) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934).
Section 86, The Chit Funds Act, 1982 (Act 40 of 1982).
Questions about Section 86
What does Section 86 of the Chit Funds Act deal with?
Section 86 of the Chit Funds Act is headed "Banks not to conduct chit business". Notwithstanding anything contained in this Act, no bank shall commence or carry on chit business after the commencement of this Act.
How do I find court cases under Section 86 of the Chit Funds Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Chit Funds Act 1982 86, section 86 Chit Funds Act 1982, section 86 of the Chit Funds Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
When did Section 86 of the Chit Funds Act come into force?
Section 86 of the Chit Funds Act, cited as Chit Funds Act 1982 86, came into force on 02 Apr 1984, having been enacted on 19 Aug 1982. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions795 words
- 6. Form of chit agreement577 words
- 22. Duties of foreman483 words
- 89. Power to make rules471 words
- 20. Security to be given by foreman428 words
- 67. Procedure for settlement of disputes and powers of Registrar or nominee419 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 16 Oct 2026. This page is not a substitute for legal advice.