The Reserve Bank of India (RBI) yesterday ordered the Manappuram Finance Company not to accept/renew deposits from the public. It also said that investing their money in companies like Manappuram Finance and Manappuram Agro Farms (MAGRO) will be a huge risk.

 

 

"The Reserve Bank has stated that acceptance of deposits either by Manappuram Finance or by Manappuram Agro Farms is punishable with imprisonment and has cautioned members of public that those who deposit money with Manappuram Finance or MAGRO do so at their own risk,'' the RBI said in the statement. Under the RBI act of 1934, Manappuram Finance and its group company MAGRO were not permitted to collect or renew deposits from the people. However, Manappuram Finance continued to do so, which is illegal and punishable with imprisonment.

Top film stars including (Venkatesh, Akshay Kumar, Vikram, Mohanlal etc.) have endorsed Manappuram brand. So is the credibility of all these big stars is at stake now? Certainly!