RBI bars Muthoot group firm from accepting deposits

The Reserve Bank of India (RBI) has barred Muthoot Fincorp Ltd, a non-banking finance company, from accepting deposits from the public on behalf of Muthoot Estate Investments.

Muthoot Estate Investments, in which the promoters of Muthoot Fincorp Ltd are partners, has collected and has been collecting deposits in the form of fixed deposits, cumulative deposits and special public deposits from the public, RBI said.

These deposits are collected through the branches of Muthoot Fincorp Ltd located at different places in Kerala.

Muthoot Estate, which is a partnership firm, is prohibited from accepting public deposits, as per central bank rules.

RBI has cautioned the public that acceptance of deposits by Muthoot Estate Investments is punishable with imprisonment and those who deposit money with by the company are doing so at their own risk.

RBI has also directed Muthoot Fincorp Ltd to stop allowing the use of its premises/branches or officials, in any manner by Muthoot Estate Investments for accepting deposits from public.

Muthoot Fincorp Ltd is a Kerala-based registered non-deposit taking NBFC.