Karnataka govt aims to increase chit fund transactions to Rs 10,000 crore
Bengaluru: Karnataka Chief Minister Siddaramaiah has stated that the state government aims to increase chit fund transactions to Rs 10,000 crore in the coming years from the current Rs 500 crore of business.
He was speaking on Saturday after releasing the new MSIL Chits software and mobile app, organised by Mysore Sales International Limited, owned by the state government.
In Kerala, transactions in this sector amount to Rs 47,000 crore. In Karnataka, only Rs 500 crore of business is happening, and the institution has a goal to increase this amount to Rs 10,000 crore in the coming days, CM Siddaramaiah stated.
There is a guarantee that the savings amount people invest for their needs, like education, health, marriage, and house, is secure. He said earning money and investing it securely is also important.
Siddaramaiah stated that there is a guarantee that people’s savings investments are secure in the government’s MSIL institution.
MSIL, a government institution, has earned people’s trust for many decades. The chit fund system started in 2005. A culture of saving is very important, as saved money comes to help in times of need, he stated.
The Chief Minister said that people, especially women, should invest the money saved from government guarantee schemes like Shakti, Gruhalakshmi, Yuvanidhi, and Annabhagya, which are implemented without any caste or class discrimination.
It is most essential that the invested money remains safe, and MSIL’s chit fund provides this assurance. There is a possibility of fraud in commonly run chit transactions. However, MSIL, being a government institution, provides security for people’s investments, he said.
Siddaramaiah said the institution, which gives only about 5 per cent profit on investments, supports people’s financial security.
Modern software has been launched today to benefit customers in MSIL’s chit fund business. Many people get trapped in the loan cycle of microfinance companies. Therefore, protection has been provided under the Small and Micro Loan Ordinance 2025, he added.
He said this act has been implemented to protect people who are suffering harassment after taking loans.