SDA bans chitti system, promissory note must for trade

In a major move by a trade body, the Surat Diamond Association has decided to remove the old Chitti system from the trade and instead made promissory note necessary for any transaction in the diamond industry. In Surat, where exists one of the world’s biggest cutting and polishing industry, the diamantaires have decided to adopt the foolproof system of promissory note to avoid defaults and for better protection to traders. 

Earlier, system of chitti was based on mutual trust and has been running in the industry for almost sixty years now. The new measure will certainly improve the trustworthiness in the industry. 

As SDA President Dinesh Navadiya told Times of India, that promissory note system has already been adopted by around 85 per cent of the traders in Surat, after stopping the chitti system.