RBI flags loan waiver offers 

RBI cautions public against loan waiver campaigns; asks to report to law-enforcement agencies. RBI warns against false campaigns offering loan waivers, asking public to report to law-enforcement. RBI urges public to not fall prey to false loan waiver campaigns, report to law-enforcement.

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

“The RBI has noticed 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,” the central bank said in a circular. 

““There are reports of such entities charging a service/legal fee for issuing ‘debt waiver certificates’ without any authority,” the circular said.

“It has also come to our notice that in certain locations, campaigns are being run by a few persons, which undermine the efforts of banks in enforcing their rights over the securities charged to the banks. Such entities are misrepresenting that dues to financial institutions including banks need not be repaid,” it added. 

“Such activities undermine the stability of financial institutions and, above all, the interest of the depositors. It may also be noted that associating with such entities can result in direct financial losses,” it further said.