The Reserve Bank of India has cautioned members of public against unauthorised loan waiver campaigns through an official notification on Monday.
The regulator has taken note of some misleading advertisements doing rounds, that were enticing borrowers by offering loan waivers. Most of these campaigns were seen in print media and on social media platforms.
The RBI also noticed that in some locations, several of these misleading campaigns were being run by some people, which ultimately undermine the efforts of banks in enforcing their rights over securities charged to them.
"The Reserve Bank of India (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 bank said.
Cautioning the public against such ads, the regulator also explained that through such campaigns, these entities charge a service/legal fee for issuing debt waiver certificates.
However, it is only a misrepresentation that dues to financial institutions need not be repaid.
Hence, to maintain the stability of financial institutions and depositor interest as well, the RBI has warned people against believing such campaigns.
"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 said.
Further, it also advised the public to report any such incidents to law enforcement agencies, should they come across any.
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