Chief Minister Siddaramaiah, Large and Medium Industries Minister MB Patil and others at the launch of MSIL’s new Chits software and mobile app in Bengaluru on Saturday. | Photo credit: ALLEN EGENUSE J.
Chief Minister Siddaramaiah on Saturday promised that people’s investments are safe in the funds of Mysore Sales International Limited (MSIL), a state government entity.
Speaking at the launch of MSIL’s new chit fund software and mobile app, the Chief Minister said that MSIL has earned the trust of people over several decades. Emphasizing the importance of savings culture, he said savings help individuals in times of need. MSIL’s chip fund system has been operating since 2005.
Save with guarantees
Mr. Siddaramaiah urged people, especially women, to invest the money saved through the government’s guarantee schemes. He noted that these programs are conducted without discrimination on the basis of caste or class.
Emphasizing the need for investment security, he said MSIL’s chit fund offers strong security compared to private chit funds where there is a higher risk of fraud. As a government institution, MSIL provides greater security for investors’ money. Although the returns are modest – around 5%, the emphasis is on ensuring financial security for the public.
Zooming in
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 million customers, Karnataka currently sees only about ₹ 500 crore annually. MSIL aims to increase this number to ₹10,000 crore. In this connection, a former managing director who served in this Kerala-based institution has been appointed as a consultant to MSIL. He reiterated that savings invested for purposes such as education, healthcare, marriage and housing remain safe with MSIL.
The newly launched software is expected to benefit customers by improving the transparency and efficiency of MSIL’s chit fund operations. The chief minister also expressed concern over people falling into debt traps of microfinance companies and said the Small and Micro Loans Ordinance 2025 was introduced to protect borrowers from harassment.
Ease of access
Minister for Large and Medium Industries MB Patil said that the MSIL chit fund software and mobile application has been specially developed to ensure easy access and transparency of transactions. MSIL has 27 branches and plans to expand its presence to all districts and taluk centers across the state.
To boost Chit operations, MSIL would appoint agents to generate employment for over 10,000 people. Special savings schemes will be introduced for women belonging to self-help groups, with sakhis of these groups appointed as agents. Besides, hotels and food retail outlets could also act as agents, Mr. Patil said
Chit scheme participants can pay their installments through UPI using the app, through the website or online. They can also participate in online bidding, he added.
MSIL Chairman and Congress MLA Puttaranga Shetty said that the organization had a turnover of ₹3,882 crore in 2024-25 and posted a profit of over ₹122 crore.
Published – 07 Feb 2026 18:57 IST