RBI warns loan waiver claims are false, misleading and may invite legal action

The Reserve Bank of India (RBI) has once again drawn attention to its Press Release dated December 11, 2023, cautioning members of the public against false and misleading campaigns promising loan waivers. The central bank said it has observed, with serious concern, the continued occurrence of such campaigns through various media channels and direct outreach by certain individuals and entities.

According to the RBI, such campaigns not only mislead the general public but also interfere with the orderly functioning of the credit system of the country. These campaigns, among others, involve false promises of waiver of outstanding dues to banks and Non-Banking Financial Companies (NBFCs), issuance of ‘debt waiver certificates’ or similar documents, and collection of fees under various pretexts, including service or legal charges, from uninformed individuals.

“It is reiterated that any claims by individuals/entities offering such services are false, misleading, and liable to attract appropriate legal action under applicable statutes,” the RBI said. The central bank emphasised that such activities undermine the stability of financial institutions and affect the interests of depositors. It also warned that association or engagement with such individuals or entities can result in direct financial loss.

Members of the public have been requested to refrain from associating with or availing services from such individuals or entities. Instead, borrowers are advised to approach their respective lending institutions directly for any information related to their loans.