Manappuram Finance Should Not Accept Public Deposits Any More: RBI

The Reserve Bank of India (RBI) on Monday 6th February, cautioned the public not to deposit money with Manappuram Finance Limited, a leading financial services firm. Manappuram Finance Ltd, headquarted in Kerala, gave up its license to take deposits from March 2011. But this non-banking company provides loans using gold as collateral, accepts or renews deposits from the public.

It has come to the notice of RBI that, Manappuram Finance Ltd, which is not authorized to accept deposits, has been accepting deposits from the public in its various branches. RBI stated that, acceptance of deposits from Manappuram Finance or Manappuram Agro Farms (MARGO) is punishable with imprisonment.

Manappuram said that they have found some technical error and have not accepted deposits since converting to a non-depositing financial company. The company reported a profit after tax and overall asset under management of Rs.160 crore and Rs.12,400 crore respectively during the third quarter of 2011.