Reserve Bank warns Muthoot Fincorp

Do not allow Muthoot Estate Investments to use your premises for accepting deposits from public' The Reserve Bank of India (RBI), on Thursday, directed Muthoot Fincorp to stop allowing the use of its premises/branches or officials, in any manner by its partnership firm Muthoot Estate Investments for accepting deposits from public. Muthoot Fincorp, Kerala, is a registered non-deposit taking non-banking finance company. “It has come to the notice of the RBI that a partnership firm with the name of 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,” RBI said in a release. These deposits are collected through the branches of Muthoot Fincorp located at different places in Kerala. “In terms of Section 45-S of the RBI Act, acceptance of deposits from the public by Muthoot Estate Investments, which is a partnership firm, is prohibited,” the RBI added. The central bank has cautioned the public that “acceptance of deposits by the company or Muthoot Estate Investments is punishable with imprisonment and those who deposit money with the company or Muthoot Estate Investments may do so at their own risk.” Muthoot Fincorp is engaged in gold loan, home loan, auto loan and loan against property through a network of over 2,188 branches. Recently, the RBI has issued strict norms for the companies which are lending money against gold jewellery. Keywords: Reserve Bank of India, Muthoot Fincorp