Dear Subscriber,

I, and my team at Chandra Lakshmi, wish you a wonderful and prosperous New Year.

Past weeks have seen a lot of activity on the economic and financial fronts in the economy. The outgoing RBI Governer, Mr. Rangarajan, announced a monetary policy that eased money supply. As an outcome the interest rates on deposits and borrowings also eased. All the Mutual Funds reduced interest rates on deposits. Soon after, the economies of some of the far eastern countries underwent a crisis. The currencies of these countries recorded big losses. This put pressure on the Rupee:Dollar Parity and the Rupee slid against the Dollar. The incumbent RBI governer, Mr. Jalan, reacted to this by tightening the money supply. As an outcome the speculation on Dollar and the Rupee's downslide is checked. The side effects are that the interest rates are again firming up and all the mutual funds have once again increased interest rates on deposits.

Its a dynamic environment ! And the degree and magnitude of this dynamism, this change, is increasing. The effects of changes in far removed markets and countries reach us fast and affect us in many ways. The forces that are acting on us are silently but definitely rising.

Chits are an effective hedge against uncertainties. Chits are a vehicle for both savings and borrowings. The rates of interest in a chit are not pre-fixed but they are linked to reality, to the markets, to demands and supplies. Chits are flexible. Chits help in creating a buffer for unforeseen contingencies and opportunities. Chits discipline. Chits compel us to look ahead and to systematically apportion and plan our finances. Chits work like insurance against uncertainties. In the uncertain environment that we face, chits have assumed increasing significance as a medium of financial planning.

In an effort to best satisfy the needs of all our subscribers in the changing environment, we continue to bring out some of the most innovative and finest schemes. We are also open to your suggestion and welcome your feedback on these matters.

Kamal Bhambhani