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.
  • For an instance, in a club of 5 members, where each member agrees to contribute Rs 10,000/-, the club amount will be 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.


  • Penalty for delayed transactions
  • Clubbers will need to pay a penalty incase their transactions are delayed and done after a pre-specified time frame
  • The penalty structure will be communicated to the club members before the bidding starts
  • All club members consent to abide by the penalty structure if they accept their invitation to join a money club


  • 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.
  • If someone defaults in a club, he/she gets blacklisted from the Money Club platform. Therefore, if someone defaults in 1 club, he/she is considered as a defaulter in all his/her active clubs.
  • The moment someone is unable to complete his/her transaction in a particular round on the scheduled date and time (shown on the app) in any of his/her clubs, he/she is declared as a defaulter in all his/her active clubs on the Money Club platform.
  • Due amount: In case of a default, the due amount is the sum total of all the present or future commitments in all the money clubs wherein someone has defaulted. And it will also include the penalty amount for delayed transfers , whenever applicable.
  • If a net investor (someone who has not won the club amount in his/her money club/s) fails to complete his transaction in his/her money club/s before the next scheduled bid date and the club defaults, he/she will lose all the invested amount that he/she has invested in his/her money club/s on the platform.


In the worst case scenario, the Money Club will take the following actions:

  • Initiate the recovery protocol–   “Notices of default” with a 3-Level escalation will be sent to the defaulters email and physical address to allow the Money Clubber some time to respond and clear his dues. This will be supplemented with a physical visit.
  • Penalty & Interest– The defaulter has to pay a penalty (subject to change) as well as interest @ 1% of the due amount per day starting from the date we start the recovery process.
  • Make calls to your contact list– If no affirmative response is received from the defaulter then the debt recovery team will call the defaulters contacts to convince the defaulter to repay the amount.
  • Issue a legal notice to the defaulter– If no response is received from the defaulter even after this, a legal notice will be sent asking to repay the debt before a certain date or else a legal case will be filed against him. Post that a civil suit will be filed against the defaulter in the court of competent jurisdiction and a court case will be initiated thereafter.
  • Affect the credit rating– Complying with the NBFC P2P guidelines as per the RBI, all the data will have to be shared with Credit Information Companies. Defaulter’s transaction details will be reported to the respective credit rating agency which will impact his/her credit score permanently.
  • Provide continued assistance– Money Club will continue to assist the aggrieved party on a best-efforts-basis to recover the funds from the defaulter.


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.
      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 amount that each member has to pay to the winner.
    • Golden Rule: All the club members should complete their transaction and update it on the app within an hour from the end time of bidding. Members following this rule build a reputed transaction history on the platform and gain more benefits.
    • The winner has to transfer commission to the Money Club bank account as calculated by the app
    • Other members will have to transfer their contribution amount – (bid amount/(n-1)) to the bid winner.
    • The app requires each member to update the transaction ID of the bank transaction on the Money Club app 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. For instance, if Nishant has NOT paid Naveen yet, Smriti will get notifications to nudge Nishant to pay his dues.