The Central Bank says that the loan waiver campaign being run on print and social media is illegal. Such loan waiver campaigns are confusing the customers.
The Reserve Bank of India (RBI) on Monday warned the public about misleading advertisements related to loan waiver offers in print media as well as on social media platforms. The Central Bank says that the loan waiver campaign being run on print and social media is illegal. Such loan waiver campaigns are confusing the customers.
Warning on issuing loan waiver certificate
According to the statement issued by RBI, it has taken note of some misleading advertisements luring borrowers by offering loan waiver. These organizations are actively promoting many such campaigns in print media as well as on social media platforms. There are also reports of such institutions charging service/legal fees for issuing “loan waiver certificates” without any authority.
Banking sector is facing losses
RBI said that the web of misleading advertisements is harming the banking sector. Loan waiver advertisements are giving a wrong message to the loan takers that it is not necessary to repay the loan. Fake advertisers are looting by charging service fees for fake loan waiver certificates. The Reserve Bank has appealed that people should bring such advertisements to the notice of the police. The central bank said that in some places, campaigns related to offering loan waiver are being run by some people, which weaken the efforts of banks in enforcing their rights. RBI said, “Such institutions are misrepresenting that there is no need to repay the dues of financial institutions including banks. “Such activities undermine the stability of financial institutions and most importantly the interest of depositors.”
RBI warned that associating with such institutions can lead to direct financial loss. The central bank said that the public is cautioned not to fall victim to such false and misleading campaigns and to report such incidents to law enforcement agencies.
