KOCHI: The total number of subscribers of the KSFE Pravasi chit scheme is nearing one lakh — a sign that the financial savings plan is gaining momentum after the initial hiccup. As per the annual report released by Kerala Infrastructure Investment Fund Board (KIIFB) early this month, the overall fund received from KSFE Ltd through bond issuance touched Rs 360.32 crore as on March 31, 2021.
The KSFE is the state government-run non-banking financial company that is entrusted with the task of managing the Pravasi chit scheme. As per the plan, KSFE will invest the money mobilised through the chitty in the bonds issued by KIIFB, which in turn uses the fund for infrastructure development.
“Despite the pandemic situation, the investment through KSFE Pravasi chit showed significant growth during 2020-21. A total of 254 bond certificates worth Rs 245.29 crore were issued during the period,” it said. Around 84% of the total fund was mobilised through Deposit Bonds and the remaining through Security Bonds.
While it took 15 months to reach the first Rs 100 crore-mark for the bond issuance, the second and third Rs 100-crore milestones were attained in six and five months, respectively. “This significant growth in KSFE Pravasi chits shows the acceptance of the scheme among the NRI community. Over the period, the systems and software of the Pravasi chit have improved substantially. The total number of subscribers of the chit scheme is nearing 1 lakh,” the report said.
KIIFB said the Pravasi Dividend Scheme — launched in December 2019 — raised Rs 181.14 crore in the first year at 9% interest rate. The second scheme started in May 2021. For the second year, KIIFB revised the rate to 8.3% based on the average cost of domestic borrowing. “Through the scheme, the NRI Malayali community across the globe can set apart a portion of their savings to earn returns besides making a contribution to creating a revolutionary change in the infrastructure development of their home state,” it said.