Last updated: October 2025

Member Verification and Documentation

Every prospective member must complete the Know Your Customer (KYC) process before being admitted into any chit group.

Valid documents include

1. Aadhar Card (Identity Proof)
2. PAN Card (For tax and identity verification)
3. Address Proof(Electricity Bill / Rental Agreement / Voter ID / Driving License)
4. The company reserves the right to verify the authenticity of the submitted documents. Any falsified or incomplete information will lead to immediate disqualification from the scheme.

Agreement Copy and Membership Confirmation

Every member must sign an official agreement copy before joining the chit.

The agreement outlines the rules, payment obligations, auction/bidding process, and settlement procedures.

Membership becomes active only after:

1. The agreement is duly signed by both the member and the company representative.
2. The first monthly installment is successfully received by the company.
3. Members are advised to read the terms carefully before signing. Once signed, it will be considered as full acceptance of the company’s terms and conditions.

Auto Verification for Online Applications

Members applying through the online platform will be subject to an automated KYC verification process.

The system will verify uploaded documents (Aadhar, PAN, Address Proof) against authorized databases.

Membership Confirmation

Membership will be confirmed only after successful completion of:

1. Identity validation
2. Payment of the first installment
3. Acceptance of the digital agreement copy

Payment Rules and Default Policy

Members must remit their monthly subscription on or before the due date specified by the company.

In case of late payment, the member will be allowed to take the chit only in the last month of the scheme term, regardless of their prior eligibility.

Settlement and Auction Process

The chit amount will be auctioned every month according to the company’s schedule.

1. The lowest bidder (member who accepts the maximum discount) will receive the settlement amount for that month.
2. The discount amount will be distributed equally among all members as per the company’s chit structure.
3. Prized members are required to continue paying their monthly subscriptions regularly for the remaining tenure.

Termination Policy

Members who fail to pay for two consecutive months may be terminated from the chit group.

Upon termination, the company reserves the right to:

1. Adjust or withhold the foreman’s commission.
2. Reallocate the member’s contribution as per the provisions of the Chit Fund Act and company policy.
3. Terminated members will not be entitled to participate in future auctions or claims for settlement amounts.

Refund Policy

Refunds are applicable only under specific conditions such as cancellation before the chit group commencement or upon completion of the chit period (for non-prized members).

Refund Process:

1. Refunds will be processed within 45 working days from the date of approval.
2. Members must ensure all documents and dues are cleared before refund initiation.
3. All refund requests and document verifications must be completed through the official SD Atchayam Chit Fund mobile application.