Karnataka plans to boost chit fund transactions to ₹10,000 crore via secure, government-backed MSIL funds, offering 5% returns and expanding access nationwide.

Karnataka Chief Minister Siddaramaiah announced plans to grow the state’s chit fund transactions from ₹500 crore to ₹10,000 crore by promoting government-backed MSIL chit funds, emphasizing their security and reliability. Speaking at the launch of a new MSIL software and mobile app, he highlighted the platform’s safety, 5% return, and role in supporting savings for education, health, marriage, and housing, particularly for women. He contrasted MSIL’s trustworthiness with risks in private chit operations and predatory microfinance practices, citing the 2025 Small and Micro Loan Ordinance to protect borrowers. The digital tools aim to boost transparency and access, with plans to expand services to all districts and appoint over 10,000 agents.