Manappuram Finance Limited, Thrissur cannot accept/renew Public Deposits : RBI

Case Brief

RBI said Manappuram Finance Limited, Thrissur, Kerala, is not permitted under the RBI Act, 1934 to accept or renew deposits from the public. The company had earlier been a deposit-taking NBFC but became a non-deposit-taking NBFC from March 22, 2011, so any fresh acceptance or renewal of matured deposits would violate its certificate of registration and RBI directions. RBI further observed that deposits were being taken through Manappuram Agro Farms (MAGRO) and that, under Section 45-S of the RBI Act, such acceptance of deposits by MAGRO is also prohibited. The press release warns the public that any deposits placed with Manappuram Finance Limited or MAGRO are at the depositor’s own risk.