RBI Redflags Unauthorised Campaigns On Loan Waiver
The Reserve Bank of India (RBI) has cautioned borrowers against misleading loan waiver campaigns. The RBI, in its recent regulation, has identified many misleading advertisements floating on social media and print media, promoting unauthorised campaign of loan waivers.
“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,” RBI stated in its recent notification.
It has also come to the notice of RBI that some of these entities are offering ‘debt waiver certificates’ without any authority.
“There are reports of such entities charging a service/legal fee for issuing ‘debt waiver certificates’ without any authority,” RBI added.
RBI has said that these misinformation campaigns are being run by a few people from a select location. These types of campaigns undermine the efforts of banks in enforcing their rights over the securities charged to the banks against the loan.
“Such entities are misrepresenting that dues to financial institutions including banks need not be repaid,” RBI further pointed out.
The RBI further mentioned that the unauthorised loan waiver campaigns undermine the authority of lender as well as leads to a sense of distrust among the borrowers and depositors.
“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,” RBI pointed out in the circular.
RBI has cautioned the public not to fall prey to such false and misleading campaigns and to report such incidents to law enforcement agencies.
