Muthoot Estate can’t accept public deposits: RBI

The Reserve Bank of India (RBI) today directed Muthoot Fincorp arm — Muthoot Estate Investments — not to accept any deposits from public in any manner.

“The RBI has directed Muthoot Fincorp Ltd to stop allowing the use of its premises or branches or officials, in any manner by Muthoot Estate Investments for accepting deposits from public,” the RBI said in a notification.

Muthoot Fincorp, a Kerala-based non-deposit taking and non-banking financial company (NBFC), has a partnered with its arm Muthoot Estate Investments.

“Acceptance of deposits from the public by Muthoot Estate Investments is prohibited. Members of the public are hereby cautioned that acceptance of deposits by the company or its arm [Muthoot Estate Investments] is punishable with imprisonment…,” the notification said.

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