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TaxhintAdvisors

October 7, 2026 · Guides

Daily Collection and Pigmy Deposit Software

Pigmy deposit software helps a society record small daily collections from members without losing a rupee between the agent’s bag and the ledger. If your agents still write receipts in a carbon book and a clerk posts them at night, this guide covers what the software should do and what to test before you buy.

In this guide

What pigmy deposit software is

A pigmy or daily deposit scheme is simple on paper. A member agrees to put in a small fixed amount every day, an agent visits the shop or house to collect it, and the society pays the balance back on maturity. The trouble is volume. One agent can have a hundred or more members on a route, and every one of them expects the amount to show up in the passbook.

Daily collection software keeps each member’s scheme account, records what each agent collected, and posts it to the ledger and cash book. It is one part of a wider loan management software buyer’s guide decision, and for a society it normally sits inside credit and thrift society software. Whether such a scheme is allowed, and on what terms, depends on your society’s bye-laws and your State or Multi-State co-operative law, so check the current Act and rules with your CA first.

How a daily collection cycle runs

This is the usual flow for the clerk, the agent and the manager.

  1. The clerk opens the account with the member’s name, daily amount, term and the agent assigned to the route.
  2. In the morning the agent opens the day’s list of members to visit.
  3. At each stop the agent records the amount on the collection app or handheld, and the member gets a receipt or an SMS.
  4. In the evening the agent hands the cash to the counter. The clerk matches the cash against the total the agent’s device shows.
  5. The entries post to member accounts and the cash book. The passbook is updated at the member’s next visit or print (see passbook, share and member ledger software).
  6. The manager looks at the agent-wise list: who missed days, who short-deposited.
  7. At maturity the clerk closes the account and the payout goes for approval.

How it helps the society

The biggest change is timing. When the agent’s list and the cash are matched the same evening, a shortfall is a ten-minute conversation. When it surfaces at month end, it is an argument.

Two numbers are worth watching every day. One is the gap between what each agent recorded and what he handed over. The other is the count of members who have not been visited for several days, because that is where a quiet default or a missed receipt hides. A single clerk can pull both from an agent-wise report instead of flipping through receipt books.

On the Taxhint side, the credit and thrift society software page lists cloud hosting, a collection app, agent and employee logins, multiple branches, recurring deposit accounts, SMS notifications and user activity logs. The page describes the collection app mainly for loan repayment follow-up and does not spell out pigmy rules, so ask how daily deposits work in your case.

Common mistakes

  • Letting agents hand over cash first and report later, so the system and the cash never meet on the same day.
  • Using one login for all agents, which makes it impossible to say who collected what.
  • Posting collections in bulk at week end because the network was poor, then guessing the dates.
  • Not deciding in advance what happens to a missed day: carried forward, penalised or ignored.
  • Skipping a review of closed accounts, so matured balances sit unpaid.

What to check in a demo

  • Can each agent have a separate login with a route-wise member list?
  • Does a collection show up in the office view straight away, or only after a sync?
  • What does the member receive: printed receipt, SMS, both?
  • Can you see an agent-wise day-end summary and a list of members not visited?
  • How are missed days, part payments and advance payments handled?
  • Can you trace who changed or deleted an entry? (Ask about the activity log.)
  • How does maturity and premature closure work, and who approves it?

Run the demo on a sample of your own members, not the vendor’s dummy data. For the audit side of the same records, read audit reports your society software should produce.

Want to see this working on your own data? See the Credit and Thrift Society Management Software, ask for a live demo on +91 93117 95484, or write to mail@taxhint.in.

FAQs

What is pigmy deposit software?

It is software that records small daily deposits collected by agents, keeps each member’s account balance and posts the totals to the society’s books. It replaces receipt books and nightly manual posting.

Can agents collect money through a mobile app?

Many systems offer a collection app for this. Taxhint lists a collection app and agent login, so ask in the demo how daily deposit collection works with it.

How do we stop an agent from collecting but not depositing?

Match each agent’s recorded total with the cash handed over every evening, and review the difference report daily. Separate agent logins and an activity log make it easy to trace entries.

Is a daily deposit scheme allowed for every society?

Not necessarily. Your bye-laws and your State or Multi-State co-operative law decide this, so check the current Act and rules with your CA before launching or changing a scheme.

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