Rules for the Money Club

 

  • Individual Contribution
    • A fixed amount that each user contributes towards the club.

 

  • Club Frequency
    • Duration between bidding rounds chosen when the club was created.
    • Fortnightly, Monthly etc.

 

  • Club Amount
      • Total value of the club per round i.e. (Number of members) x (Individual contribution), also known as pooled amount.
      • e.g., In a 5 member
        club where each member agrees to contribute Rs 10,000/-, Club amount is 5 x Rs 10,000 = Rs.50,000.

 

  • Bid Date
    • Date agreed by the members of the club for bidding.

 

  • Bid Time
    • Time of the day when the bidding will start on the Bid Date agreed by the Club members according to their availability.

 

  • Bid Window
    • Duration for which the members will be able to bid.
    • The Bidding Window is fixed at 15 minutes.
    • The app sends alarms to members before the bidding starts as a courtesy, however members should ensure not to miss the bidding.

 

  • Defaulted Club
    • A Club will be declared defaulted if any of the following conditions are met:
      • One or more members of a club refuse or fail to make the necessary transfers against a round of bidding before the scheduled start of the next round of bidding.
      • One or more members of a club refuse or fail to confirm the necessary transfers against a round of bidding before the scheduled start of the next round of bidding.
      • In case of a default The Money Club is not responsible for any collections. All users have to settle their transactions offline and The Money Club doesn’t assume any liability.

 

Bidding rules

 

  • Minimum bid amount
    • The minimum amount that the first bidder can bid with will be 1% of the club amount rounded up to a rupee. If the club amount is Rs 50,000, then the minimum bid amount will be Rs 500.
    • Bid amount is Rs 0 for final round and priority round.

 

  • Minimum bid increment
    • The minimum difference between two consecutive bids. This is 0.5% of the club amount with a cap Rs 100 and subject to following slabs.
      0.5% of the club amount rounded up to a rupee (minimum Re 1) up to Rs 25
      Rs 25 if 0.5% of the club amount is between Rs 25 and Rs 50
      Rs 50 if 0.5% of the club amount is between Rs 50 and Rs 100
      Rs 100 if 0.5% of the club amount to Rs 100 or more.

 

  • Commission
    • Winner of the bid will transfer the platform service charge to the Money Club. This service charge will be at least 0.1% of club amount.
    • Final round and Priority round commission is 0.1% of club amount.

 

  • Bidding
    • Every member is eligible to win the bid in one of the rounds.
    • A member cannot bid if he/she already won the bid in a previous round.
    • The member who bids the highest wins the round.
    • Winner should transfer only commission to MC.
    • Rest of the club members share bid amount equally and transfer ((contribution – (bid/(club size -1))) to the winner.
    • In all cases the amount is rounded up to a rupee with a minimum of Rs.1.
    • If no one places a bid for the first few minutes, the system will randomly pick a member eligible for bidding and place a minimum bid on his/her behalf.
    • The last round doesn’t involve bidding.
    • For Priority Clubs, the club owner gets to choose a round that he can pick the amount without bidding for it.

 

  • Fund Transfer Rules
    • Once the bidding is complete, the app will compute the amounts each member has to pay to the winner.
    • The winner has to transfer commission to the Money Club bank account as calculated by he app based on the bid amount.
    • Other members will have to transfer their contribution amount – (bid amount/(n-1)) to the bid winner.
    • The app requires each member to enter the transaction ID of the bank transaction and share it with the recipient to confirm the receipt of funds.
    • The Club can be moved to the next round only after all fund transfers are confirmed by the club members.
    • A club will be declared defaulted if any member of the club fails to pay his/her dues from one bid round before the beginning of the next bid round.
    • All members of the club will receive courtesy reminders about the pending transactions both through the app and through SMS text messages, however members should ensure to transfer the amount right after the bidding is complete.
    • After a certain period of time every member of the group will start receiving notifications about all the pending transactions of the club, to ensure full transparency in the process. e.g. if Nishant has NOT paid Naveen yet, Smriti will get notifications to nudge Nishant to pay his dues.