The committee

A committee, also called a kitty, is a rotating savings and credit association: a group of people each contribute a fixed sum monthly and one member takes the whole pot each month, by lot or by auction, until everyone has had a turn.

It is the standard informal savings instrument in Punjab, run among women, among shopkeepers, among workers in a factory, and among migrants abroad.

It works entirely on reputation. There is no contract, no collateral and no enforcement other than social standing, and default is rare because the cost of it is being unable to join another.

It is how a great many Punjabi households have financed weddings, migration, vehicles and business capital, in India and in the diaspora.

It also collapses periodically when an organiser absconds, and those cases reach the courts.

It is izzat operating as a financial instrument, and it moves very large sums with no paperwork at all.

The gurdwara committee, the mandir committee, the youth club, the sports committee and the welfare society are the basic institutions of a Punjabi village and neighbourhood, and their elections are contested seriously.

They collect money, run buildings, organise events and hold funds, and the diaspora sends money through them because there is nothing else to send it through.

There is no register of them, no audit requirement for most, and no study of how much money passes through them, which is probably a very large amount.

What we don't know

  • The volume of money moving through committees in Punjab, which is unmeasurable.

Where to check this

Named but not linked. These are real, findable documents. This project has not consulted them for this page.

  • Literature on rotating savings and credit associations in South Asia.

This page has not yet been read through by the editor. Treat it with more caution than the rest.

How this page was written. The text is compiled from the standard published histories and reference works, not from a document held in hand. Nobody from this project has visited the place or read the archive. The list above is where a reader can go to check it, not a record of what was consulted line by line. Dates and figures are the received account. If you hold something better, write in and it will be corrected.

This is one of 120 accounts in The Village Itself, the chapter of this site covering how a Punjabi village works and what it holds.