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 today advised that Manappuram Finance Ltd, 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 said in a statement.
It added that acceptance of deposits either by Manappuram Finance or by group company Manappuram Agro Farms (MAGRO) is punishable with imprisonment.