How a monthly kitty works (and how to keep it fair)

A kitty (also called a committee, chit or ROSCA) is one of the oldest ways friends, families and colleagues save together. Everyone puts the same amount in each month, and each month one member receives the whole pot. By the end of the cycle every member has received exactly once.

A simple example

Five members each contribute ₹5,000 a month. The pot is ₹25,000. The cycle lasts five months, and each month a different member receives the pot. Nobody pays interest and nobody earns it — the benefit is getting a lump sum earlier (for the early receivers) or disciplined saving (for the later ones).

The monthly rhythm

1. Pay: every member pays their share by the due date, usually by UPI.
2. Upload proof: members upload the UPI reference or a screenshot.
3. Verify: the treasurer checks the bank statement and marks each payment verified.
4. Pay out: once everyone has paid, the month’s receiver gets the pot and confirms receipt.

Choosing the payout order

Groups usually pick one of two methods. A manual order works when members agree among themselves — for example someone with a wedding in month two goes early. A random draw is fairest when there is no agreement. KittyPay runs a secure random draw and records who ran it and when, so nobody can quietly reshuffle the order later.

What keeps a kitty healthy

• Write the rules down before month one: amount, due date, late rules, holdback and payout order.
• Keep every payment visible to every member — trust comes from shared records.
• Never pay out a month until all contributions for that month are verified.
• Only invite people you know and trust. A kitty is a promise between people.

KittyPay is a record-keeping tool. It never holds or moves money — payments go directly between members by UPI, and KittyPay keeps the shared record.