RBI issues warning against campaigns on loan waiver

The Reserve Bank of India (RBI) issued a warning on Monday, urging the public to be cautious about misleading advertisements promising loan waivers, both in print media and on social media platforms. The central bank noted that it has observed certain misleading ads enticing borrowers with offers of loan waivers. These entities, actively promoting such campaigns, have been reported to charge a service/legal fee for issuing 'debt waiver certificates' without any proper authority.

In addition, the RBI highlighted instances where individuals in certain locations are running campaigns related to debt waiver offers, undermining the efforts of banks to enforce their rights. 

The central bank expressed concern that these entities misrepresent that dues to financial institutions, including banks, do not need to be repaid. Such activities not only undermine the stability of financial institutions but also jeopardize the interests of depositors.

"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.

The central bank urged the public not to fall prey to false and misleading campaigns and encouraged reporting such incidents to law enforcement agencies. This cautionary statement aims to protect individuals from potential financial harm and maintain the integrity of the banking and financial system.

(With PTI inputs)