In 1982, the ministry of finance enacted the Central Chit Funds Act to regulate the sector. Under the Act, the central government chose to notify the Act in different states on different dates. States are responsible for notifying rules and have the power to exempt certain chit funds from the provisions of the Act. In 2012 the central government notified the Act in Arunachal Pradesh, Gujarat, Haryana, Kerala and Nagaland.
Under the Central Act, all chit funds require previous sanction from the state government. The capital requirement for establishing chit funds is one lakh rupees and at least 10 per cent of profits should be transferred to a reserve fund. The amount of discount (that is, the bid) is capped at 40 per cent of the total chit fund value. States may appoint a registrar who will be responsible for regulation, inspection and dispute settlement in the sector. Any grievances over decisions made by the registrar can be subject to appeals directed to the state government.