Karnataka Chief Minister Siddaramaiah has expressed the state government’s goal to increase chit fund transactions to Rs 10,000 crore from the current Rs 500 crore. He made this announcement while launching the new MSIL Chits software and mobile app, organized by Mysore Sales International Limited, a state government-owned entity.
Comparatively, Kerala records transactions worth Rs 47,000 crore in this sector, highlighting the potential for growth in Karnataka. Siddaramaiah emphasized the importance of securing people’s savings for essential needs like education, health, marriage, and housing. He assured that investments in the government’s MSIL institution are safe and crucial for financial stability.
The Chief Minister underscored the trust people have placed in MSIL over the years, emphasizing the significance of a savings culture. He encouraged individuals, particularly women, to invest in government-backed schemes such as Shakti, Gruhalakshmi, Yuvanidhi, and Annabhagya without discrimination. Siddaramaiah stressed the security provided by MSIL’s chit fund system, safeguarding investments against potential fraud.
Highlighting the institution’s modest profit margins of around 5%, Siddaramaiah reiterated MSIL’s commitment to ensuring financial security for the public. The introduction of modern software in the chit fund business aims to enhance customer experience and protect individuals from falling into debt traps created by microfinance companies. Additionally, the Chief Minister mentioned the Small and Micro Loan Ordinance 2025, designed to shield borrowers from harassment in the loan repayment process.
