The Reserve Bank of India (RBI) on Monday cautioned the public against false and misleading claims by individuals or entities promising loan waivers and asked them to approach their lending institutions directly for information related to loans.
The caution comes at a time when the RBI observed the continued occurrence of such campaigns through various media channels and direct outreach by certain individuals and entities.
RBI said, “Such campaigns not only mislead the general public but also interfere with the orderly functioning of the credit system of the country.”
These campaigns involve false promises of waiver of outstanding dues to banks or non-banking financial companies (NBFCs), issuance of ‘debt waiver certificates’ or similar documents, and collection of fees under various pretexts, including service or legal charges, from the uninformed public.
RBI also said that any such claims made by individuals or entities offering such services are false, misleading, and liable to attract appropriate legal action under applicable statutes.
The banking regulator also said that such activities undermine the stability of financial institutions, affect depositors’ interests, and that association or engagement with such individuals or entities can result in direct financial loss.
Previously, in 2023, it had drawn attention to such false and misleading campaigns by entities charging a service or legal fee for issuing ‘debt waiver certificates’ without any authority.
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