Muthoot Estate Investments: Stops Accepting Fixed Deposits

Muthoot Estate Investments (MEI), in which the promoters of Muthoot Fincorp are partners, will no longer accept public deposits, said a press release issued by company. On recently , the RBI (Reserve Bank of India) had issued an order to this effect.

In the press release, the gold loan NBFC (non-banking finance company) said that as per exemptions in Section 45-I (c) of the RBI Act, firms are allowed to accept deposits for certain specific, legitimate business purposes, including real estate and infrastructure, and accordingly MEI was accepting public deposits in Kerala.

MEI is primarily engaged in development of hotels, real estate projects and power generation.

“We are discussing this with the regulators and will be strictly following the RBI directives in this regard,” the release said. The release also said that Muthoot Fincorp Ltd is registered with the RBI as a non-deposit taking NBFC.

“As such MFL has never accepted any deposits from the public. However the company can issue secured debentures, secured by the assets of the company. There is no restriction or ban on Muthoot Fincorp Ltd in issuing secured debentures as is being done now,” said the release.

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