Money Masters Leasing & Finance Limited

In exercise of powers under Sections 45MB(1) and 45MB(2) of the RBI Act, 1934, RBI prohibited Money Masters Leasing & Finance Limited from accepting any public deposits, whether fresh deposits or renewals, with immediate effect for a period of six months. RBI also barred it from selling, transferring, creating charge or mortgage over, or otherwise dealing with, its property and assets without prior permission for 180 days. The action was taken after inspection of the company’s books with reference to its financial position as on March 31, 2010, which showed violation of extant Directions on deposit acceptance. RBI said the measures were necessary to protect depositors’ interests and were in public interest.

MMLFL cannot accept new or renewed deposits during the restriction period and must repay deposits as they mature. It also cannot deal with its assets without RBI’s prior written permission for 180 days, while continuing only its other lawful business activities. Depositors are protected by the restriction, and the company must notify agents, employees, and branches of the order.