KSFE Pravasi Chitty Chits without Borders
S K SANIL
Spreading across 125 countries and all Indian states, Pravasi chitty, takes the sweetness of the state’s most trusted financial instrument, tops it with the security of KSFE and serves it right to the fingertips of all Malayalees across the globe.
The Kerala State Financial Enterprises Ltd., popularly known as the KSFE is a household name in Kerala for savings through chits though it has other lines of products and financial services. KSFE, a Miscellaneous Non Banking Company (MNBC), has been operating since 1969 in the State with a view to shield the common folk from fly-by-night financial sector entities.
As everyone knows, Keralites constitute the country’s major NRI Diaspora and obviously the remittances from abroad have its own substantial share. Chit being a traditional instrument which is imprinted in the minds, shall play the role of a savings instrument among the nonresident Keralites (NRK), per se. NRKs have a savings habit with an aspiration to secure and to achieve their life time goals while they are away for jobs. All these aspects put together has become the food for thought as to why not this monthly remittance instrument can be the right savings option for NRKs across the globe.
Rise of the Pravasi Chitty
There was a landmark notification during 2015 permitting the chit foremen like KSFE to enroll NRIs under certain conditions such as the banking channels must be used for all transactions, the pay outs or the proceeds in chits must be non-repatriable and the KYC compliance for subscribers must be ensured. In line with this the Government of Kerala has authorised KSFE to enroll NRIs in chits through issuing a suitable GO.
The first Pinarayi Government had meantime decided to tap NRI funds in a big way for making use of infrastructural projects funding by reviving the KIIFB on account of the inadequate fund flow from divisible pool etc. The progeny is the so called Pravasi Chitty or the NRI chit, a completely tech driven savings and credit instrument. It is a right blend of Kerala’s traditional chitty culture with cutting-edge technology and State-backed security. A careful approach and systematic design with a well-knit project planning from KSFE-KIIFB duo have all followed when contemplating the onerous product launch. Product positioning, streamlining the operations and aggressive marketing strategies have also been given ample attention.
It was on 18th of June 2018 that Chief Minister Pinarayi Vijayan launched KSFE Pravasi Chitty, initially targeting the UAE and GCC countries. Then it slowly spread its wings to nations across the globe. Currently Malayalis from as many as 125 countries are beneficiaries to Pravasi Chitty. A section of the Keralites from other Indian States and UTs are also taking part in this KSFE product. The mobile application provides facilities for intending the chits in accordance with the choice of the customers. They can electronically transmit funds from their Bank accounts and can register any standing or other required instructions with regard to the operations. Furthermore, the most important peculiarity is the facility to participate in online bidding. The basic norm is the bidding for maximum discount so as to obtain the prize money in each month as far as the chit is concerned. While the domestic operations in KSFE is through auctions in offline mode, here in Pravasi Chitty it is through online mode and as such the subscribers across the globe can enter into the platform for enjoying the fruit of their respective chit.
A Digital Bridge to Home
Pravasi Chitty operates as a fully RBI-compliant savings-cum-borrowing scheme under the Chit Fund Act 1982. 100% digital process from registration to chitty termination Click-Wrap Agreements for subscriber contracts Facilities for online auctions, prize money payment, deposit renewal, closure and security document submission Payment gateway integration with 6+ major banks for seamless installment payment.
Backing Kerala’s Development
The Kerala Infrastructure Investment Fund Board (KIIFB) is the State Government’s flagship financial institution for mobilising resources for long-term infrastructure projects. Its mission is to ensure Kerala’s development through sustainable funding.
Pravasi Chitty plays a dual role in this mission:
1. Mobilising Development Funds – The entire float fund of Pravasi Chitty is invested in KIIFB NRI Bonds, ensuring subscriber money directly fuels infrastructure projects like roads, bridges, schools and hospitals.
Through a dedicated mobile app, users can register, make payments via integrated banking gateways, and participate in online auctions, a first-of-its kind feature in chit history.
Supporting Security Requirements – The Chitty Security Deposit (CSD), a statutory requirement for starting new chitties, is also placed in KIIFB Bonds, further boosting KIIFB’s resource base. Over ₹1,000 crore worth of KIIFB Bonds have been subscribed through Pravasi Chitty to date. T hese investments are channeled into projects that improve connectivity, public amenities and economic growth across Kerala. Pravasi Chitty subscribers thus become indirect stakeholders in Kerala’s infrastructure transformation.
One Chitty, A World of Possibilities
First-of-its-kind online auction platform for chitties Automated SMS/email alerts for installments and auctions Freedom to submit security documents at any KSFE branch in Kerala Transparent operations with full digital access to reports and accounts