New Delhi, May 5 (KNN) The Reserve Bank of India has cautioned the public against misleading campaigns that falsely promise loan waivers, stating that such activities could lead to financial losses and disrupt the country’s credit system.
In a statement, the central bank referred to its earlier advisory issued on December 11, 2023, and said it continues to observe instances of individuals and entities promoting false claims through various media channels and direct outreach methods.
According to the RBI, such campaigns often involve false assurances of waiving outstanding dues owed to banks and non-banking financial companies (NBFCs), issuance of so-called ‘debt waiver certificates,’ and collection of fees from borrowers under the guise of service or legal charges.
Borrowers To Contact Banks Directly
The central bank clarified that claims made by such entities are false and misleading and may invite legal action under applicable laws.
It also warned that these activities could undermine the stability of financial institutions, impact depositors’ interests, and expose borrowers to direct financial losses.
The Reserve Bank of India advised borrowers to directly contact their respective banks or NBFCs for any loan-related queries and urged the public to report such misleading campaigns to law enforcement agencies.
(KNN Bureau)
