"It is a matter of concern and it is going to explode. Thousands of crores of rupees have been picked up from rural areas," Reddy said at an interactive session on investor awareness programme organised by the Bengal National Chamber of Commerce and Industry said.
"In this state (read West Bengal) the number is very high. The impact will be huge," he said.
He also pointed out that regulations should be stregthened in this regard.
The regional director of Ministry of Corporate Affairs Navrang Saini speaking at the event said there was need for educating the public, but did not highlight any concerete step in curbing the chit funds by the department.
