RBI cautions public against misleading campaigns on loan waiver

The Reserve Bank of India (RBI) on Monday cautioned the public against falling prey to false and misleading campaigns enticing borrowers by offering loan waivers.

RBI warned of potential financial losses, urging reporting of such activities harming financial institutions and depositors’ interests.

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, RBI said in a statement.

It has also come to our notice that in certain locations, campaigns are being run by a few persons, which undermines the efforts of Banks in enforcing their rights over the securities charged to the Banks.