Impact of chit funds in state huge: Calcutta Stock Exchange

Last Updated: Mon, Jan 21, 2013 17:20 hrs

Kolkata, Jan 21 (IANS) The Calcutta Stock Exchange (CSE) Monday said impact of chit funds in West Bengal would be huge as the number of such firms in the state is very high.

"Thousands of crores of rupees have been picked up from rural areas (by the chit funds). It is a matter of concern," CSE managing director and CEO B. Madhav Reddy said here.

Reddy was speaking at an event organised by industry lobby, Bengal National Chamber of Commerce and Industry (BNCCI).

"The number is very high in this state. So the impact will be huge," he added.

The Reserve Bank of India (RBI) had earlier warned the West Bengal government as well as other state governments about the mushrooming of chit funds and also written to them to take appropriate actions against them for duping depositors.

RBI Governor Duvvuri Subbarao had called for greater awareness among police and the general public for checking the proliferation of the chit funds in the country.

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