The Reserve Bank of India (RBI) cautioned the public today not to fall prey to misleading advertisements related to loan waiver offers in print and on social media platforms.
In a statement, RBI said it has noticed certain misleading advertisements enticing borrowers by offering loan waivers. It further noticed that these entities seem to be actively promoting many such campaigns in the print and social media platforms. There are reports of such entities charging a service or legal fee for issuing ‘debt waiver certificates’ without any authority, it added.
RBI has also come to 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 them. It said such entities are misrepresenting that dues to financial institutions, including banks, need not be repaid. The statement further said that such activities undermine the stability of financial institutions and, above all, the interest of the depositors. RBI cautioned that associating with such entities can result in direct financial losses.
