Rules for the Money Club
- Individual Contribution Amount that each user contributes towards the club.
- A fixed amount mutually agreed upon by the members that every user needs to contribute towards the club.
- All the members will contribute an equal amount towards the club.
- Frequency Duration of a single round of bidding before the members are required to pool in money
- Mutually agreed upon by the members.e.g Weekly, Fortnightly, Monthly etc.
- Club Amount Total amount the club generates in a single round i.e (Number of members) x (Individual contribution) e.g
- Number of members in a club : 5
- Each member agrees to contribute an amount of Rs.10,000/-
- Club amount : 5 x 10,000 = Rs 50,000.
- Bid Date Calendar date for the bidding to take place.
- Mutually agreed upon by the members of the club e.g., it can be 1st Saturday of the month or every alternate Saturday depending on the frequency that we decided.
- Bid Time Time of the day when the bidding will start on the Bid Date.
- Mutually agreed upon by the members according to their availability.
- Bid Window Duration for which the members will be able to bid
- This will be fixed by The Money Club and may wary from one club to another.
The app will send you alarms before the bidding starts to ensure that you don’t miss the bid.
- It is compulsory for everyone to bid.
- Minimum bid amount The minimum amount that the first bidder can bid with.
- will be 1% of the club amount i.e. Rs 500 if the club pooled amount is Rs 50,000.
- Minimum bid increment Minimum difference in the amount between any two bids.
- Will be 50% of the minimum bid. Which means if someone has bid Rs 500 first, the next bid should be Rs 750 or Rs 1000 and so on.
- A bid can only be higher than the previous bid.
- The person with the highest bid at the end of the bidding window is automatically eligible to pick the funds for that round.
- The same rules will apply for all the rounds, except the last one when there will not be any bidding.
Fund Transfer Rules
- Once the bidding is complete the app will compute the amounts each one has to pay to the winner
- The winner has to transfer the only the Commission of X% of his bid amount to the Money Club bank account.
- Others will have to transfer their contribution-(bid amount/(n-1)) to the bid winner
- The app will required each member to enter the transaction ID of the bank transaction and share it with the recipient to confirm the receipt of funds.
- Only when the funds are received by all the respective members will the club move to the next round.
- 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 timely reminders about the pending transactions both through the app and through SMS text messages.
- 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. For eg if Nishant has paid Naveen yet, Smriti will get notifications so that she can nudge Nishant to pay on time.