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RBI Warns Against Misleading Loan Waiver Campaigns

The Reserve Bank of India (RBI) has cautioned the public against false and misleading campaigns offering loan waivers.

It was considered necessary to issue this warning in light of the proliferation of such campaigns across social media platforms and other forms of media. The RBI has also taken note of how borrowers are being charged a service or legal fee for debt waiver certificates. Several entities are issuing such certificates without any authority and making false claims assuring borrowers that they need not repay the dues owed to financial institutions including banks. These instances seriously undermine the stability of financial institutions along with the depositors’ interest.

RBI’s press release dated December 11, 2023, cautions the public that associating with entities making such false claims could result in financial losses and urges citizens to report these incidents to law enforcement agencies.