KOCHI: Pravasi Chitty, the ambitious financial savings plan announced in 2017-18 to raise Rs 25,000 crore from expatriate Malayalis in the first three years, has turned out to be a damp squib.Till date, the government could mobilise only less than Rs 150 crore through the scheme.
“The lukewarm response to the chitty is mainly because it’s an online subscription model. Many people residing abroad are not either internet savvy or not comfortable to subscribe to the chitty through the internet,” said a senior officer of Kerala State Financial Enterprises (KSFE).
The KSFE is a state government-run non banking financial company which is entrusted with the task of managing the Pravasi Chitty scheme.
While announcing the Pravasi Chitty scheme in his 2017-18 budget, Finance Minister T M Thomas Isaac announced that Rs 10,000 crore will be raised in the first year, and Rs 25,000 crore over a period of three years.
The plan was to route the investment through Kerala Infrastructure Investment Fund Board (KIIFB) for the state’s infrastructure development such as coastal and high-range highways. More than three years after the big announcement, KSFE officials told TNIE that as of data till February 17, KSFE could collect only Rs 143.24 crore.
“A total of 47,798 people from 69 countries have registered to join Pravasi Chitty. Of them, the KYC (Know Your Customer) process for 30,741 investors have been completed. Among them, 14,384 investors have joined 464 chit schemes. From this, we have been able to garner Rs 143.24 crore,” said a senior KSFE officer.He said about 1,000 investors are joining the chit scheme every month. “If you calculate the full tenure of the chit schemes, we can say these schemes will have a size of Rs 650 crore,” he said.
KSFE has invested Rs 101.49 crore in the bonds till now.
Pravasi Chitty, which is billed as “the only comprehensive online version of traditional chit funds” is aimed at expatriates of Kerala origin, who can join the scheme through a website or a mobile app. Chits having monthly instalments ranging from Rs 2,500 to Rs 100,000 and with duration ranging from 25 to 60 months are offered to the prospective investors.