RBI Cautions Public Against Unauthorised Campaigns On Loan Waivers

The RBI in a statement on Monday said it has noticed certain misleading advertisements enticing borrowers by offering loan waivers

The RBI also cautioned that associating with such entities can result in direct financial losses.

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The Reserve Bank of India (RBI) on Monday issued a warning to the people not to fall prey to misleading advertisements related to loan waiver offers in print media as well as on social media platforms. The central banking regulator in a statement on Monday said it has noticed certain misleading advertisements enticing borrowers by offering loan waivers.

These entities, it said, seem to be actively promoting many such campaigns across the print media as well as social media platforms. There are also reports of such entities charging a service/legal fee for issuing 'debt waiver certificates' without any authority. The RBI also said that in certain locations, campaigns related to debt waiver offers are being run by a few persons, which undermine the efforts of banks in enforcing their rights. "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," the RBI said.

The RBI cautioned that associating with such entities can result in direct financial losses. Members of the public are cautioned not to fall prey to such false and misleading campaigns and report such incidents to law enforcement agencies, the central bank said. 

Meanwhile, on December 8 (Friday), the MPC headed by Governor Shaktikanta Das said that it has decided to keep the repo rate unchanged at 6.5 per cent. This marked the fifth consecutive time that the central bank chose to maintain a pause on increasing the rate.  Announcing the address, Das said that the MPC unanimously voted to keep the interest rate unchanged. Additionally, the governor informed that the committee decided to remain focused on withdrawal of accomodation, and 5 members voted in favour of the decision.