MSIL to revamp chit fund biz through app, eyes Rs 10K-cr mkt

Time of India

5 hours ago

Bengaluru: Karnataka govt is revamping Mysore Sales International Ltd's (MSIL) chit fund operations aiming to generate up to Rs 10,000 crore annually in a move that seeks to formalise and scale up the state's presence in the informal savings market.
Industries minister MB Patil held a meeting with MSIL officials late Tuesday evening to chart a new course for the state-owned entity. "The present chit fund business is roughly Rs 500 crore annually, while Kerala has an annual turnover of Rs 50,000 crore to Rs 70,000 crore. Karnataka's aim is to increase the business to Rs 10,000 crore," said an industries department official present at the meeting.
To drive this transformation, the state will launch a mobile app and build a dedicated agent network to bring formal structure and transparency to the chit fund operations.
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MSIL managing director Manoj Kumar said the initiative will make chit funds safe, secure and accessible to all sections of society. "While MSIL was in the chit fund business for over two decades, it is only known to be a supplier of liquor in the state. Now, we're revamping our brand and opening MSIL chit funds, which will have a corpus of anywhere between Rs 1 lakh and Rs 1 crore," he said.
Kumar said the mobile app — already tested — is ready for rollout.
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It will allow members to manage subscriptions, track payments and handle accounts. "MSIL managed as much as Rs 500 crore through books till recently. Now, with the mobile application being developed, we expect it to be seamless and secure through digital transactions," he added.
To extend its reach, MSIL will recruit agents at district and taluk levels. "We are considering enrolling retired bankers at the district levels to act as the foramen of the chit fund business and deploy agents with the incentive, apart from a 5% commission," Kumar said.
Among the products planned is flagship Micro Chits, aimed at serving financially excluded sections of society. "The revamp is to ensure there is financial inclusion of those who cannot approach banks for credit or savings. In an unstable market, the Karnataka govt is leveraging its name for the chit funds to be floated by MSIL," said Patil.
The state hopes that by bringing legitimacy and digital infrastructure to the chit fund space, MSIL can become a trusted financial platform — moving far beyond its liquor-retailing legacy.