RBI Cautions against Unauthorised campaigns on Loan waiver

The Reserve Bank of India (RBI) recently alerted of certain false advertising tempting borrowers with loan waivers. These entities appear to be actively promoting numerous such initiatives in the press as well as on social media platforms.

There have been instances of such businesses demanding a service/legal fee for issuing ‘debt waiver certificates’ without authority.

It has also come to our attention that in specific areas, a few individuals are running campaigns that hinder Banks’ efforts to enforce their rights over the securities charged to the Banks. Such entities falsely claim that payments owed to financial institutions, including banks, do not need to be reimbursed.

Activities like these undermine the stability of financial institutions and, more importantly, the interests of depositors. It should also be mentioned that associating with such entities can result in direct financial losses.

Members of the public are advised not to fall victim to such fraudulent campaigns and to report such events to law enforcement agencies.