RBI curbs on Manappuram

KOCHI: The Reserve Bank of India on Monday barred Manappuram Finance Limited (MFL), Thrissur, from accepting or renewing deposits from the public. According to it, under the Reserve Bank of India Act, 1934, MFL is not permitted to accept or renew deposits from the public.It was a company registered as a deposit- taking non-banking financial company. But,it became a non-deposit taking non-banking financial company with effect from March 22, 2011.However, MFL stated that it does not accept any public deposits. “We are only accepting investments through secured non-convertible debentures and subordinate bonds which do not fall under the definition of public deposits,” said a release by its managing director I Unnikrishanan.