RBI issues warning against unauthorised loan waiver campaigns | Mint
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Business News/ Industry / Banking/  RBI issues warning against unauthorised loan waiver campaigns
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RBI issues warning against unauthorised loan waiver campaigns

The Reserve Bank of India warns of misleading advertisement campaigns offering loan waivers. The central bank urges the public to not fall prey to these false promises and report such incidents to law enforcement agencies

The RBI cautioned that associating with such entities that offer unauthorised loan waivers can result in financial loss.Premium
The RBI cautioned that associating with such entities that offer unauthorised loan waivers can result in financial loss.

The Reserve Bank of India (RBI) on Monday raised the alarm over misleading advertisement campaigns offering loan waivers to borrowers. The RBI urged the public to not fall prey to these false and misleading campaigns and asked the citizens to report such incidents to law enforcement agencies.

The RBI move came after the apex bank noticed misleading advertisements related to loan waiver offers in print media as well as on social media platforms enticing borrowers.

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Expressing concern over these campaigns, the RBI advised individuals to exercise caution and refrain from engaging with entities making dubious promises of loan waivers. The apex bank also identified several entities engaged in promoting these dubious schemes across print and social media platforms.

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

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The RBI cautioned that associating with such entities can result in direct financial losses. “There are reports of such entities charging a service/legal fee for issuing ‘debt waiver certificates’ without any authority", the banking regulator said.

The central bank further said it has also come to its notice that in certain locations, campaigns are being run by a few persons, which undermine 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,' the RBI statement read.

 

 

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Published: 11 Dec 2023, 05:55 PM IST
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