MUMBAI: The Reserve Bank of India (RBI) Monday raised fresh concerns over unauthorised campaigns falsely promising loan waivers, warning that these pose seious risks not only to individual borrowers but also to the stability of the broader lending system undergirded by credit discipline. Entities running such campaigns could face legal action, it warned.
The central bank underscored its “serious concerns” around misleading outreach by certain individuals and entities through social media and direct channels, offering to secure loan waivers or issuing so-called debt waiver certificates in exchange for fees.
These entities, RBI warned in its statement, often charge borrowers legal or service costs to secure waivers for existing debt commitments.
RBI cautioned such campaigns can mislead borrowers into believing their obligations can be written off outside formal processes, which could affect repayment behaviour and weaken credit discipline. “Such campaigns not only mislead the general public but also interfere with the orderly functioning of the credit system of the country,” it said.
Source Name : Economic Times