Section 86: Banks not to conduct chit business.

The Chit Funds Act, 1982Central Act · Act 40 of 1982

(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).

Where this provision sits

Act	The Chit Funds Act, 1982
Section	86
Marginal note	Banks not to conduct chit business.
Jurisdiction	Central
Status	In force as published by the source

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