law: Chit Funds Act, 1982
  2.Definition.-
  In this Act, unless the context otherwise require, -
  (a)"approved bank" means the State Bank of India constituted
  
  under section 3 of the State Bank of India Act, 1955 (23 of 1955), or a
  
  subsidiary bank constituted under section 3 of the State Bank of India
  
  (Subsidiary Banks) Act, 1959 (33 of 1959), or a corresponding new bank
  
  constituted under section 3 of the Banking Companies (Acquisition and Transfer
  
  of Undertaking) Act, 1970 (5 of 1997), or a Regional Rural Bank established
  
  under section 3 of the Regional Rules Banks Act, 1976 (21 of 1976) , or a
  
  corresponding new bank constituted under section 3 of the Banking Companies
  
  (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or a banking
  
  company as defined under clause (e) of section 5 of the Banking Regulation Act,
  
  1949 (10 of 1949 ), or a banking institution notified by the Central Government
  
  under section 51 of that Act or such other banking institution as the State
  
  Government may, in consultation with the Reserve Bank, approve for the purposes
  
  of this Act;
  (b)"chit" means a transaction whether called chit, chit fund,
  
  chitty, kuri or by any other name by or under which a person enters into an agreement
  
  with a specified number of persons that every one of them shall subscribe a
  
  certain sum of money (or a certain quantity of grain instead) by way of
  
  periodical instalments over a definite period and that each such subscriber
  
  shall, in his turn, as determined by lot or by auction or by tender or in such
  
  other manner as may be specified in the chit agreement, be entitled to the
  
  prize amount.
  Explanation.- A transaction is not
  
  a chit within the meaning of this clause, if in such transaction, -
  (i)some alone, but not all, of the subscribers get the prize amount
  
  without any liability to pay future subscriptions; or
  (ii)all the subscribers get the chit amount by turns with a liability to
  
  pay future subscriptions;
  (c)"chit agreement" means the document containing the articles
  
  of agreement between the foreman and the subscribers relating to the chit;
  (d)"chit amount" means the sum-total of the subscriptions
  
  payable by all the subscribers for any instalment of a chit without any
  
  deduction of discount or otherwise;
  (e)"chit business" means the business of conducting a chit;
  (f)"defaulting subscriber" means a subscriber who has
  
  defaulted in he payment of subscriptions due in accordance with the terms of
  
  the chit agreement.
  (g)"discount" means the sum of money or the quantity of grain
  
  which a prized subscriber is, under the terms of the chit agreement, required
  
  to forego and which is set apart under the said agreement to meet the expenses
  
  of running the chit or for distribution among the subscribers or for both;
  (h)"dividend" means the share of the subscriber in the amount
  
  of discount available under the chit agreement for rateable distribution among
  
  the subscribers at each instalment of the chit;
  (i)"draw" means the manner specified in the chit agreement for
  
  the purpose of ascertaining the prized subscriber of any instalment of the
  
  chit;
  (j)"foreman" means the person who under the chit agreement is
  
  responsible for the conduct of the chit and includes any person discharging the
  
  functions of the chit and includes any person discharging the functions of the
  
  foreman under section 39;
  (k)"non-prized subscriber" does not include a defaulting
  
  sub-scriber;
  (l)"prescribed" means prescribed by rules made under this Act;
  (m)"prize amount" means the difference between the chit amount
  
  and the document, and in the case of a fraction of a ticket means the
  
  difference between the chit amount and the discount proportionate to the
  
  fraction of the ticket, and when the prize amount is payable otherwise then in
  
  cash, and value of the prize amount shall be the value at the time when it
  
  becomes payable;
  (n)"prize subscriber" means a subscriber who has either
  
  received or it entitled to receive the prize amount;
  (o)"Registrar" means the Registrar of Chits appointed under
  
  section 61, and includes an Additional, a Joint, Deputy or an Assistant
  
  Registrar appointed under that section;
  (p)"Reserve Bank" means the Reserve Bank of India constituted
  
  under the Reserve Bank of India Act, 1934 (2 of 1934);
  (q)"State Government", in relation to a Union territory, means
  
  the administrator of that Union territory appointed by the President under
  
  article 239 of the Constitution;
  (r)"subscriber" includes a person who hold a fraction of a
  
  ticket and also a transferee of a ticket or fraction thereof by assignment in
  
  writing or by operation of law;
  (s)"ticket" means the share of a subscriber in a chit.