Nation

RBI issues warning on ads offering loan waivers

RBI cautions the public against entities charging fees for 'debt waiver certificates' without authority

The Reserve Bank of India (RBI) issued a warning about misleading advertisements offering loan waivers (photo: National Herald archives)
The Reserve Bank of India (RBI) issued a warning about misleading advertisements offering loan waivers (photo: National Herald archives) National Herald archives

 The Reserve Bank of India (RBI) on Monday, 11 December issued a warning on misleading advertisements enticing borrowers by offering loan waivers.

There are reports of such entities charging a service/legal fee for issuing ‘debt waiver certificates’ without any authority.

These entities seem to be actively promoting many such campaigns in the print media as well as social media platforms, the RBI said.

Members of the public are cautioned not to fall prey to such false and misleading campaigns and report such incidents to law enforcement agencies, the central bank 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.

"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," the RBI statement added.

Published: 11 Dec 2023, 12:50 PM IST

Follow us on: Facebook, Twitter, Google News, Instagram 

Join our official telegram channel (@nationalherald) and stay updated with the latest headlines

Published: 11 Dec 2023, 12:50 PM IST