Chitly|Terms of Service

Terms of Service

Last updated: 05 May 2026

1. About Chitly

Chitly ("Company", "We", "Us") provides a software-as-a-service (SaaS) platform for chit fund management. Chitly is a technology tool only. We are not a chit fund company, not a Non-Banking Financial Company (NBFC), and not a financial services provider of any kind.

2. Critical Disclaimer — No Financial Liability

  • Chitly does not collect, hold, transfer, or manage any money from members or operators.
  • Chitly is not a party to any chit fund contract between an operator and their members.
  • Chitly is not responsible for any payment defaults, fraud, losses, or disputes between operators and members.
  • The Foreman (Operator) registered on Chitly is solely and fully responsible for running a legally compliant chit fund under the Chit Funds Act, 1982 and applicable state laws.
  • Chitly's role is equivalent to that of accounting software (like Tally or Excel) — we provide a tool, we do not run your business.

3. Operator Responsibilities

By registering as an Operator on Chitly, you agree that you are solely responsible for:

  • Obtaining all required licenses and registrations under the Chit Funds Act, 1982 and your state's chit fund regulations
  • Verifying the identity (KYC) of all members you add to the platform
  • Collecting member installments and paying out prize amounts
  • Filing returns with the Registrar of Chits as required by law
  • Maintaining security deposit requirements under the Act
  • Handling all member disputes, defaults, and legal proceedings
  • Ensuring all information entered into Chitly is accurate and truthful

4. Member Data & Privacy

Operators are responsible for obtaining valid consent from their members before entering their personal data (name, phone, Aadhaar, PAN, address) into Chitly. Chitly processes this data on behalf of the Operator as a data processor under India's Digital Personal Data Protection Act, 2023 (DPDP Act). See our Privacy Policy for full details.

5. Payments via Platform

If you use our integrated payment collection feature (powered by Razorpay), all funds are collected directly into the Operator's own registered Razorpay account. Chitly does not receive, hold, or process any funds. Chitly charges a platform fee for facilitating the payment link generation only. Razorpay's own Terms of Service govern all payment transactions.

6. Prohibited Uses

  • Running unauthorised or fraudulent chit funds using our platform
  • Entering false member data or forged KYC documents
  • Using Chitly to facilitate money laundering or financial fraud
  • Collecting money from members without valid chit fund registration

Violation of these terms will result in immediate account suspension and reporting to appropriate authorities.

7. Limitation of Liability

To the maximum extent permitted by applicable law, Chitly shall not be liable for any indirect, incidental, special, consequential, or punitive damages, including but not limited to loss of profits, loss of data, financial losses, or any losses arising from member defaults, fraud by operators, or misuse of the platform. Chitly's total liability to any operator shall not exceed the subscription amount paid in the previous three months.

8. Governing Law & Jurisdiction

These Terms are governed by the laws of India. Any disputes shall be subject to the exclusive jurisdiction of courts in Hyderabad, Telangana, India.

9. Contact

For legal queries: legal@chitly.in