Bengaluru to host All India Chit Funds Summit-2025 on Sept 13

Bengaluru, Sep 11 (PTI) The Karnataka Chitsters’ Association on Thursday said it will host an All India Chit Funds Summit 2025 in the city on September 13.

The event will bring together leading chit fund companies and experts to discuss the sector’s digital roadmap.

In a press release, the Association said chit funds, a cornerstone of India's informal financial system, are undergoing a historic transformation as digital technologies bring unprecedented levels of transparency, efficiency, and inclusivity.

"The sector is now embracing innovations such as blockchain, mobile payments, and artificial intelligence to rebuild investor confidence and expand financial inclusion," the statement read.

The release noted that the organised chit fund industry accounts for around Rs 35,000 crore in annual turnover with nearly 30,000 registered firms nationwide, while the unregistered sector is vastly larger, estimated to circulate up to Rs 30 lakh crore annually, almost 30 to 100 times the formal market.

The industry remains highly concentrated in the south, with Tamil Nadu, Andhra Pradesh, Karnataka and Kerala contributing about one-third of the overall size. Kerala’s KSFE alone records Rs 12,000 crore annually, while Karnataka’s turnover is around Rs 6,000 crore, it said.

Association President T C Vijayakumar said the sector “is now expanding at nearly 20 per cent in recent years, buoyed by technology-driven initiatives.

He pointed to blockchain-ledgers, e-KYC and UPI-based payments, AI-driven fraud detection, and mobile-first platforms as the tools driving modernisation and greater financial inclusion. PTI GMS ROH