Chit Fund is a very old Financial Concept of Small Savings, with a motto of Mutual Help. In a Chit Fund, a specified number of individuals (Subscribers) join together forming a Group in which they resolve to save and deposit with a Designated Person (Foreman/Company), a definite amount of money, for a definite period of time termed as Chit Duration. The savings of these individuals every month are pooled together to make a lump sum amount which is put to Public Auction in the Group with a view to select the individual who gets the amount in that particular month. For ease of selection, Subscribers are asked to offer discounts on the pooled amount. The individual offering/bidding the highest discount is selected for that month as the Prized Subscriber or Prize Winner and he will be eligible to take the pooled amount in that month, after deducting the Discount offered by him and the Commission of the Designated Person/Company. The amount of money foregone as Discount is distributed equally among all the subscribers every month as Chit Dividend.