(1)No person carrying on chit business shall utilise the moneys collected in respect of such business (other than commission or remuneration payable to such person or interest or penalty, if any, received from a defaulting subscriber), except for—(a)carrying on chit business; or(b)giving loans and advances to non-prized subscribers on the security of subscriptions paid by them; or(c)investing in trustee securities within the meaning of section 20 of the Indian Trusts Act, 1882 (2 of 1882); or(d)making deposits with approved banks mentioned in the chit agreement.
