RBI warns of misleading loan waiver ads

Identifying various entities involved in promoting these dubious schemes, the RBI expressed concern and advised people to exercise caution.
Image used for representational purpose only.
Image used for representational purpose only.

NEW DELHI: The Reserve Bank of India (RBI) on Monday issued a warning against deceptive advertisement campaigns offering loan waivers to borrowers. RBI urged the public to remain vigilant and report any such incidents to law enforcement agencies. Misleading advertisements promising loan waivers have been observed by RBI in print media and social media platforms, enticing borrowers with false promises. 

“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 apex bank said in the notification.

Identifying various entities involved in promoting these dubious schemes, the RBI expressed concern and advised people to exercise caution. These entities have been found to charge fees for issuing ‘debt waiver certificates’ without any authority, potentially leading to direct financial losses for individuals.  RBI stressed that engaging with such entities undermines the stability of financial institutions and the interests of depositors. 

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