Mobile app for chit transactions launched

Bengaluru: Karnataka Chief Minister Siddaramaiah has launched the software and mobile app developed to facilitate smooth and transparent chit fund transactions under the State-owned Mysuru Sales International Limited. Speaking on the occasion, he said that since MSIL is a government-owned institution, there is no scope for fraud.

"At present, the organisation's annual business turnover is less than Rs 500 crore, and the target is to scale it up to Rs 5,000 crore within five years. Instead of trusting private chit funds and risking losses, it would be safer for the public to invest in MSIL," he said.

Siddaramaiah pointed out that in neighbouring Kerala, a state-run financial institution conducts economic transactions exceeding Rs 1 lakh crore annually, including chit operations, and has more than 45 lakh customers.

One of its chit systems alone records an annual turnover of Rs 47,000 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 said.