HYDERABAD: In what could be a major boost for city-based startups, other States including Tamil Nadu, Karnataka and Andhra Pradesh are looking to emulate T-Chits, the blockchain-based chit fund administration that the State government had set up with T-Hub startup ChitMonks. More than six States, including TN, Karnataka and AP, are in talks with city-based ChitMonks to set up a similar system through blockchain for their chit fund apparatus. The use of blockchain brings in immense transparency for millions of subscribers and protects them from unregistered business and potential fraud.
In 2018, the State government through its Registration & Stamps Department launched T-Chits. As of now, 731 companies and 1,460 branches have been registered with T-Chits. It has also recorded an auction turnover of Rs 1,499.48 crore in the last one year.
Speaking to Express, ChitMonks founder Pavan Adipuram said, “In Karnataka, there is no system for chit funds. In Tamil Nadu, there is some machinery and we are working with its e-governance section to include blockchain in that. In AP, we’ve given a demo.”
Apart from the three south States, Adipuram said that a few Northern States have also approached ChitMonks. “Unlike in the South, where we had to approach the governments with our innovation, the North Indian States are approaching us.”
The unnamed States also include one where there is a massive scandal going on regarding chit funds, and which has the potential to topple its government. The push to adopt blockchain for chit funds also comes because Niti Aayog has been pushing for the same. Principal Secretary of IT and Industries Jayesh Ranjan said that ChitMonk’s innovation also found a mention in Nasscom’s release on blockchain.