Karnataka launches online MSIL chit operations; targets Rs 5,000 cr scale in five years

Siddaramaiah said MSIL, being a government-owned institution, offers complete security for public investments, leaving no scope for fraud.

Karnataka Chief Minister Siddaramaiah, on February 7, launched the software and mobile application for the state-owned Mysuru Sales International Limited (MSIL) to enable online and transparent chit fund transactions.

Speaking at the launch held in Vidhana Soudha, Siddaramaiah said MSIL, being a government-owned institution, offers complete security for public investments, leaving no scope for fraud. At present, MSIL’s annual business turnover is below 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 is safer for people to invest in MSIL,” the Chief Minister said. He added that savings made through government guarantee schemes such as Shakti, Gruhalakshmi, Yuvanidhi, and Annabhagya should be channelled into secure investment platforms like MSIL, particularly encouraging women to invest.

Kerala model cited; former MD appointed as consultant

Drawing a comparison with Kerala, Siddaramaiah said that a state-run financial institution (KSFE) there handles economic transactions exceeding Rs 1 lakh crore annually, including chit operations, with over 45 lakh customers. One of its chit systems alone records a turnover of Rs 47,000 crore per year. A former Managing Director from that institution has now been appointed as a consultant to MSIL, he said.

Focus on rural areas, women’s savings and SHGs

Minister for Large and Medium Industries, MB Patil, said the new MSIL Chits software and mobile app were developed to ensure ease of access and transparency. MSIL now operates through 27 branches, with plans to expand to all districts and taluk centres across Karnataka, focusing primarily on rural areas and women’s savings.

10,000 jobs likely as MSIL plans large agent network

To strengthen operations, MSIL plans to appoint agents, creating employment for over 10,000 people. Women from self-help groups, particularly Sakhis, will be appointed as agents. Hotels and retail grocery stores will also be enabled to function as agents, while priority will be given to investments by government employees, Patil said.

Participants will be able to pay instalments via UPI through the mobile app, website or other online modes, and can also participate in bidding digitally.

Army canteen–style MSIL stores under consideration

Patil further said a proposal is under consideration to open MSIL retail stores on the lines of Army canteens, allowing government employees to purchase essential goods at subsidised rates. If implemented, the initiative could benefit nearly 20 lakh families.

Vision 2030 roadmap outlines expansion and CSR push

MSIL Chairman Puttaranga Shetty said the organisation recorded a turnover of Rs 3,882 crore in 2024-25 and posted a profit of over Rs 122 crore. A ‘Vision 2030’ roadmap has been prepared to strengthen the institution, along with allocations for socially beneficial initiatives under its CSR framework.