Rotierende Spar- und Kreditgruppen in Indien: Die Chit Funds

Abstract

Rotating Savings and Credit Associations (RoSCA) are one of the most wide-spread informal financial institutions throughout the world. Their Indian version, so-called Chit Funds, are of special interest because they still exist today in great variety, from the simple to the more developed. The simple Chit Fund provides basic financial services, especially to poorer women, whereas at least some of the developed Chit Funds are an example for the competitiveness of traditional financial institutions in comparison to formal banks. RoSCA's chances and constraints result from a detailed consideration of their different functioning variants. Flexibility, adaptability, customer orientation and provision of basic financial services are the strengths of RoSCA, whereas the constraints are mainly seen in their limited funds, in their distribution mode as well as in the rotation system itself, so that the future of Chit Funds is seen as a hybrid form between rotating and nonrotating savings and credit association. In the near future, RoSCA will continue to be important as a provider of financial services especially in programmes for the promotion of women as well as in credit programmes.