RBI cautions public against depositing money with Muthoot Estate Investments
Mumbai, March 29, 2012
The Reserve Bank of India (RBI) today cautioned members of the public to note that acceptance of deposits by Muthoot Estate Investments, which is a partnership firm, is prohibited in terms of Section 45-S of the RBI Act.
A press release from the central bank said Muthoot Fincorp Ltd, Kerala is a registered non-deposit taking Non-Banking Financial Company (NBFC).
"It has come to the notice of Reserve Bank of India that a partnership firm with the name of 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. These deposits are collected through the branches of Muthoot Fincorp Ltd located at different places in Kerala," the release said.
"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. Members of the public are hereby cautioned to note 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," the release said.
The 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, the release added.