RBI warns public against misleading loan waiver campaigns, urges vigilance and reporting

The Reserve Bank of India (RBI) has cautioned members of the public against falling prey to false and misleading campaigns on loan waivers and reporting such incidents to law enforcement agencies.

This caution comes in the wake of the central bank

noticing certain misleading advertisements enticing borrowers by offering loan waivers.

“These entities seem to be actively promoting many such campaigns in the print media as well as social media platforms.

“There are reports of such entities charging a service/ legal fee for issuing ‘debt waiver certificates’ without any authority,” per an RBI statement.

It has also come to the central bank’s notice that in certain locations, campaigns are being run by a few persons, undermining banks’ efforts to enforce their rights over the securities charged to them.

“Such entities are misrepresenting that dues to financial institutions, including banks, need not be repaid. Such activities undermine the stability of financial institutions and, above all, the interest of the depositors,” RBI said.

The central bank also cautioned members of the public that associating with such entities can result in direct financial losses.