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RBI Issues Warning Against Deceptive Loan Waiver Campaigns

12:56 PM Dec 11, 2023 IST | 8PM News Desk
rbi issues warning against deceptive loan waiver campaigns
RBI issues warning against deceptive loan waiver campaigns

New Delhi [India] : The Reserve Bank of India (RBI) has raised concerns over unauthorized campaigns misleading borrowers with promises of loan waivers.

According to RBI, these deceptive entities are actively promoting their campaigns through print media and various social media platforms, targeting unsuspecting individuals seeking financial relief.

Reports indicate that these entities are charging unsuspecting borrowers a service or legal fee under the guise of issuing ‘debt waiver certificates,’ despite lacking any legal authority to do so.

The RBI has identified instances where certain individuals are running campaigns that undermine the efforts of banks to enforce their rights over the securities held by them. The misleading narrative propagated by these entities suggests that dues to financial institutions, including banks, need not be repaid.

Such misrepresentation not only poses a threat to the stability of financial institutions but also jeopardizes the interests of depositors.

The RBI emphasizes that associating with these entities can lead to direct financial losses for individuals.

The RBI has issued a stern warning to the public, urging them not to fall prey to these false and misleading campaigns. Individuals are advised to exercise caution and refrain from engaging with entities making dubious promises of loan waivers.

Recognizing the potential harm caused by such activities, the central bank encourages the public to report any incidents related to these deceptive campaigns to law enforcement agencies.

This move by the RBI underscores the importance of maintaining the integrity of financial systems and protecting the interests of borrowers, financial institutions, and depositors. As the authorities crack down on these unauthorized campaigns, it serves as a reminder for the public to remain vigilant and report any suspicious activities to prevent financial losses and uphold the stability of the banking sector.

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