So I read some news before 2012, What understood is
Both Muthoot and Manappuram opted as non-deposittaking non-banking finance companies, so they couldn’t accept deposits from the public. But these NBFCs have huge working capital requirements to give out loans, just like bank but like banks they can’t accept deposit. So what they did was they formed sole proprietorship business to collect deposits, and then there wasn’t anything expressively saying its illegal for normal firms to accept deposit. Manappurams was Manappuram agro and Muthoot Pappachans (George Muthoot’s brother company) was Muthoot Real Estate. They used the NBFC branches to take deposit. But regulators quickly cut down on them, and they had to refund the amount
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