MSIL sets Rs 10,000 cr chit fund turnover target by 2028

Bengaluru, Sep 13 (PTI) The Mysore Sales International Limited (MSIL) has set a target of expanding its chit fund operations to achieve a turnover of Rs 5,000 crore by 2026 and Rs 10,000 crore by 2028.

Currently, MSIL manages chit fund values ranging from Rs one lakh to above Rs one crore, the Karnataka Chitsters Association said in a statement quoting the MSIL Managing Director Manoj Kumar.

"MSIL announced its vision to expand chit fund operations dramatically to Rs 5,000 crore turnover by 2026 and Rs 10,000 crore turnover by 2028. Currently, MSIL manages chit fund values ranging from Rs one lakh to above Rs one crore," the statement read.

It added that the new roadmap will expand offerings to meet the needs of both smaller and larger investors.

"The initiative is being developed in close coordination with the Government of Karnataka," the statement said.

It added that at the inaugural All India Chit Funds Summit 2025, Karnataka Chitsters Association, MSIL’s Managing Director, Manoj Kumar highlighted the company’s vision to make chit funds more transparent, inclusive, and accessible to households across Karnatakaa.

“MSIL has always been seen as a leader in trading. While our association with the liquor business has been well-known, we want chit funds to define our future identity,” he said.

“Our goal is to make chit funds the most trusted financial instrument for ordinary families – a tool that helps them save, build assets, and meet life’s big milestones,” Kumar said.

MSIL said it has “already launched digital platforms for chit fund operations, including e-options, online management, and transparent tracking for members.” The initiative aims “to integrate self-help groups and rural households into chit funds, enabling them to save and multiply government benefits such as guaranteed cash transfers.” Reaffirming the state’s commitment, Registrar of Cooperative Societies, T H M Kumar said the Government of Karnataka “will take proactive steps to modernise regulations, promote transparency, and enable digital transformation in the industry.” He acknowledged that chit funds have remained a “neglected sector” and assured that the government will positively consider the required amendments and reforms.

“The government will explore online bidding platforms and digital release of security deposits, leveraging IT and AI to minimise bureaucratic interference,” he said.

Secretary of Cooperation Department, S B Shettennavar, stressed the need to regulate unregistered chit funds and expand to rural areas.

Sailaja Kiron, MD of Margadarsi Chit Fund, said, “the Chit Fund Act needed amendments in tune with present day needs.” PTI GMS ROH