RBI warns against Manappuram Finance accepting deposits

The RBI, on Monday, said it has come across instances of acceptance of deposits by Kerala-based Manappuram Finance even after the firm converted itself into a non-deposit taking non-banking financial company, cautioning it was not permitted to do so.

“The Reserve Bank has advised that Manappuram Finance Limited, Thrissur, Kerala (earlier known as Manappuram General Finance and Leasing Ltd), is not permitted under the Reserve Bank of India Act, 1934, to accept/renew deposits from the public,” the central bank stated, adding that acceptance of deposits either by Manappuram Finance or by by group company Manappuram Agro Farms (MAGRO) is punishable with imprisonment.

The statement also “cautioned members of public that those who deposit money with Manappuram Finance Ltd or Manappuram Agro Farms (MAGRO) do so at their own risk”.