RBI cautions against unauthorised campaigns on loan waiver

Mumbai: The Reserve Bank of India on Monday cautioned public not to fall prey to misleading advertisements related to loan waiver offers in print media as well as on social media platforms.

In a statement, the RBI said it has noticed certain misleading advertisements enticing borrowers by offering loan waivers.

These entities, it said, seem to be actively promoting many such campaigns across the print media as well as social media platforms.

There are also reports of such entities charging a service/legal fee for issuing 'debt waiver certificates' without any authority.

The central bank further said that in certain locations, campaigns related to debt waiver offers are being run by a few persons, which undermine the efforts of banks in enforcing their rights.

"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," the RBI said.

RBI cautioned that associating with such entities can result in direct financial losses.

Members of the public are cautioned not to fall prey to such false and misleading campaigns and report such incidents to law enforcement agencies, the central bank said.