Why in news? The ‘E-chits’ application was launched in Andhra Pradesh to regulate chit-fund companies and prevent fraud.

Highlights:

• The application would help in ensuring better regulation of chit-fund businesses in the State and provide a platform for subscribers to complain online.
• All the chit-fund transactions will be done through the mobile app, developed by the Registration and Stamps Department, keeping in view the increasing number of fraud cases.

Benefits of the app

• “E-chits system will not only prevent the frauds of the chit fund firms but also help the subscribers to avoid losses.
• The app will help in effectively controlling the chit-fund companies and bringing transparency to the business.
• Subscribers can verify the registration of companies operating in their areas and can join on their wish.
• All the chit-fund companies in the State have to follow this new electronic system and said the officials concerned would accord online approvals to transactions for which the companies have to ensure all the necessary compliances through the e-chits platform.