Siddaramaiah Launches Innovative Software and Mobile App for Chit Fund Transactions in Karnataka

Karnataka Chief Minister Siddaramaiah recently introduced a new software and mobile app to streamline chit fund transactions under Mysuru Sales International Limited (MSIL). He emphasised that as MSIL is government-owned, the risk of fraud is minimal. Siddaramaiah encouraged the public to invest in MSIL rather than private chit funds, which might pose financial risks.

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Currently, MSIL's annual business turnover is under Rs 500 crore. The goal is to increase this figure to Rs 5,000 crore within five years. Siddaramaiah noted that in Kerala, a state-run financial institution handles transactions exceeding Rs 1 lakh crore annually, including chit operations, with over 45 lakh customers. A former Managing Director from this Kerala institution has been appointed as a consultant for MSIL.

MSIL Chits Software and Mobile App

Minister for Large and Medium Industries M B Patil stated that the newly developed MSIL Chits software and mobile app aim to enhance transparency and ease of access in transactions. Currently operating 27 branches, MSIL plans to expand into all districts and taluk centres across Karnataka, focusing on rural areas and women's savings.

Patil highlighted that the returns from MSIL's scheme would surpass those offered by banks. To bolster chit operations, MSIL intends to recruit agents, creating jobs for over 10,000 individuals. Special savings schemes will be introduced for women in self-help groups, with Sakhis from these groups serving as agents.

Expanding Reach and Employment Opportunities

Hotels and retail grocery stores will also act as agents for MSIL chits. Government employees' investments will be prioritised, with efforts underway to ensure MSIL chits reach every household. Participants can pay instalments via UPI using the app or online and participate in bidding online.

Patil mentioned a proposal to establish MSIL stores similar to Army canteens, allowing government employees to buy essential goods at subsidised rates. This proposal's feasibility is being studied, potentially benefiting around 20 lakh families if implemented.

Financial Performance and Future Plans

MSIL Chairman Puttaranga Shetty reported a turnover of Rs 3,882 crore for 2024-25, with profits exceeding Rs 122 crore. A Vision 2030 roadmap has been developed to strengthen the institution further. Funds are being allocated for socially beneficial initiatives under the CSR framework.

With inputs from PTI