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

Karnataka CM assures safety of investments in MSIL chit funds, aiming to grow transactions from ₹500 crore to ₹10,000 crore.

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.

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.

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.