RBI bars Muthoot group company from taking public deposits

Mumbai: The Reserve Bank of India has barred Muthoot Fincorp Ltd from accepting deposits from the public on behalf of Muthoot Estate Investments, a statement from the RBI said on Thursday.

Muthoot Estate, which is a partnership firm, is prohibited from accepting public deposits, as per RBI rules.

RBI said Muthoot Estate Investments has been collecting deposits from the public through branches of Muthoot Fincorp.

The Muthoot group is into gold finance, financial services and consumer loans, among others.

Earlier this month, the RBI had tightened norms on the proportion of gold’s value that can be lent from non-banking financial institutions.

The RBI said all non-banking finance companies that lend against gold collateral should maintain a loan-to-value ratio not exceeding 60 percent for loans granted against gold jewellery.