Hyderabad: In order to make the unorganised chit fund industry more accessible and rewarding, Telangana Government Registration and Stamps Department in partnership with the Information Technology Department and Hyderabad-based startup ChitMonks has launched a platform called T-Chits.
The platform which will run on blockchain technology will enable the registration and functioning of chit fund companies fully digital. In addition, the platform will also provide easy, transparent and trustworthy access for customers of these companies.
“Currently the entire registration process of chit fund companies is manual with about 14 sub-registrars maintaining about $3 billion-worth of chit fund accounts. With the new platform, the whole process will get digitised thus reducing the cost and time spent,” said Srinivasulu Vemula, Joint Inspector General, Registration and Stamps Department, Government of Telangana.
The government is planning to start the platform as a pilot project for three months wherein 10 chit fund companies and two Registration Offices have been identified by the department. The pilot will include building of the entire life cycle of the chit fund company digitally and then providing services to the customers.
According to the IT Principal Secretary Jayesh Ranjan the T-Chit is the first product from the government that be using blockchain technology. “This is part of the IT policy that we had launched wherein we had promised to collaborate with startups from the State to use their product for government services,” Ranjan said.
Meanwhile, Vemula pointed out that the State is home to about 640 Chit Fund companies doing business in about 1,200 branches running around 9,000 active chit groups amounting to approximately Rs 40,000 crore of assets under management. Telangana itself accounts for about 25 per cent of the chit business in India.
ChitMonks will be providing the technology and system support to T-Chit and help in maintaining smooth functioning of the process overall. The T-Hub incubated startup started its journey two years back and is planning to make chit fund industry more organised and accessible.