The RBI stated there have been reviews of entities charging a service/authorized charge for issuing ‘debt waiver certificates’ with none authority.
| Photo Credit: SHASHANK PARADE
The Reserve Bank of India (RBI) has cautioned members of the general public in opposition to falling prey to false and deceptive campaigns providing loan waivers and requested them to report such incidents to law-enforcement businesses.
“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 financial institution stated in a round.
““There are reports of such entities charging a service/legal fee for issuing ‘debt waiver certificates’ without any authority,” the round stated.
“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 additional stated.
