People’s investments safe in MSIL chit fund, says Karnataka CM

Chief Minister Siddaramaiah on Saturday promised that people’s investments are safe in chit funds of Mysore Sales International Limited (MSIL), a State government-owned entity.

Speaking at the launch of MSIL’s new chit fund software and mobile application, the Chief Minister said MSIL has earned the trust of people over several decades. Emphasising the importance of a savings culture, he said savings help individuals during times of need. MSIL’s chit fund system has been operational since 2005.

Save through guarantees

Mr. Siddaramaiah urged people, particularly women, to invest money saved through government guarantee schemes. He noted that these schemes are implemented without discrimination based on caste or class.

Highlighting the need for security of investments, he said MSIL’s chit fund offers strong assurance compared to private chit funds, where there is a higher risk of fraud. As a government institution, MSIL provides greater safety for investors’ money. Though the returns are modest — around 5% — the focus is on ensuring financial security for the public.

Scaling up

Referring to the growth potential of the chit fund sector, Mr. Siddaramaiah said that while Kerala has chit fund transactions worth ₹47,000 crore with 45 lakh customers, Karnataka currently records only about ₹500 crore a year. MSIL aims to increase this figure to ₹10,000 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 reiterated that savings invested for purposes such as education, healthcare, marriage, and housing remain secure with MSIL.

The newly launched software is expected to benefit customers by improving transparency and efficiency in MSIL’s chit fund operations. The Chief Minister also expressed concern over people falling into debt traps with microfinance companies and said the Small and Micro Loan Ordinance, 2025, has been implemented to protect borrowers from harassment.

Ease of access

Minister for Large and Medium Industries M.B. Patil said the MSIL chit fund software and mobile app have been developed specifically to ensure ease of access and transparency in transactions. MSIL has 27 branches, and there are plans to expand its presence to all districts and taluk centres across the State.

To strengthen chit operations, MSIL would 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 would also be enabled to function as agents, Mr. Patil 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.

MSIL chairman and Congress MLA Puttaranga Shetty said the organisation recorded a turnover of ₹3,882 crore in 2024–25 and posted a profit of over ₹122 crore.