Bengaluru, Feb 7 (PTI) Karnataka Chief Minister Siddaramaiah on Saturday launched the software and mobile app developed to facilitate smooth and transparent chit fund transactions under the State-owned Mysuru Sales International Limited.

Speaking on the occasion, he said that since MSIL is a government-owned institution, there is no scope for fraud.

"At present, the organisation's annual business turnover is less than Rs 500 crore, and the target is to scale it up to Rs 5,000 crore within five years. Instead of trusting private chit funds and risking losses, it would be safer for the public to invest in MSIL," he said.

Siddaramaiah pointed out that in neighbouring Kerala, a State-run financial institution conducts economic transactions exceeding Rs 1 lakh crore annually, including chit operations, and has more than 45 lakh customers.

One of its chit systems alone records an annual turnover of Rs 47,000 crore. In this context, a former Managing Director who had served in that Kerala-based institution has been appointed as a consultant for MSIL, he said.

Minister for Large and Medium Industries M B Patil said in a statement that the MSIL Chits software and mobile app have been developed specifically to ensure ease of access and transparency in transactions.

"The organisation currently has 27 branches, and there are plans to expand its presence to all districts and taluk centres across the State. The focus will primarily be on rural areas and women's savings. The returns offered through the scheme would be higher than those available through banks," he said.

According to Patil, to strengthen chit operations, MSIL will appoint agents, generating employment for over 10,000 people. Special savings schemes will be introduced for women belonging to self-help groups, with Sakhis of these groups being appointed as agents.

In addition, hotels and retail grocery stores will also be enabled to function as agents. Priority will also be given to investments by government employees. Overall, efforts are being made to ensure that MSIL chits reach every household, he said.

Participants in the chit scheme can pay their instalments through UPI using the app, via the website, or online. They can also take part in bidding online, he added.

Patil said there is a proposal to open MSIL stores on the lines of Army canteens, where government employees would be able to purchase essential goods at subsidised rates.

The feasibility of the proposal is currently being studied, and if implemented, it would benefit around 20 lakh families, he said.

MSIL Chairman Puttaranga Shetty said the organisation recorded a turnover of Rs 3,882 crore in 2024-25 and posted a profit of over Rs 122 crore.

A 'Vision 2030' roadmap has been prepared to strengthen the institution, and funds are being allocated for socially beneficial initiatives under the CSR framework, Shetty added. PTI AMP ADB