BENGALURU: To facilitate smooth and transparent chit fund transactions under the State-owned Mysuru Sales International Limited (MSIL), Chief Minister Siddaramaiah launched a software and mobile app developed.
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.
He said that 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.
Pointing out that one of its chit systems alone records an annual turnover of Rs 47,000 crore, and that a former managing director who had served in that Kerala-based institution has been appointed as a consultant for MSIL.
Minister for Large and Medium Industries, MB Patil, said 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. The focus will primarily be on rural areas and women’s savings. 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. Participants in the chit scheme can pay their instalments through UPI using the app or online. They can also take part in bidding online, he added.