The Reserve Bank of India (RBI) today barred Muthoot Estate Investments, a partnership firm of Kerala-based Muthoot Fincorp, from collecting deposits from the public. The banking regulator also directed Muthoot Fincorp to stop allowing the use of its branches and officials by Muthoot Estate Investments for collecting deposits from the public.
"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 ... may do so at their own risk," the central bank said.