Day Since money became the formal mode of exchange, the need and importance of saving the money for future needs started growing among the human being. Man living in a society in family set-up need money in every stage of their life cycle.Day since money became the formal mode of exchange, the need and importance of saving the money for future needs started growing among the human being. Man living in a society in family set-up need money in every stage of their life cycle.From the above description it has been understood that human being (both men and women) need money in every stage of their life to fulfill their financial commitment. In order to meet these financial commitments, people have developed the practices of saving, that is taught to us for ages by the ancestors.Millions of low and middle income people subscribed to various types of chit fund agencies to get benefits in the form of borrowing money at no or nil interest rate or save money for future financial need of short duration of one to three years . Chit fund savings have ease the process of liquidity in a society.Elaborate discussion made in this chapter provided clear understanding the chit fund financing.
