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RBI cautions public against misleading campaigns on loan waiver

The Reserve Bank of India (RBI) on Monday cautioned the public against falling prey to false and misleading campaigns enticing borrowers by offering loan waivers.

RBI cautions public against misleading campaigns on loan waiver

Reserve Bank of India

The Reserve Bank of India (RBI) on Monday cautioned the public against falling prey to false and misleading campaigns enticing borrowers by offering loan waivers.

These entities seem to be actively promoting many such campaigns in the print media as well as on social media platforms. There are reports of such entities charging a service/legal fee for issuing ‘debt waiver certificates’ without any authority, RBI said in a statement.

It has also come to our notice that in certain locations, campaigns are being run by a few persons, which undermines the efforts of Banks in enforcing their rights over the securities charged to the Banks.

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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, it added.

The RBI further cautioned the members of the public not to fall prey to such false and misleading campaigns and to report such incidents to law enforcement agencies.

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