Beware of misleading loan waiver advertisements: RBI

The Reserve Bank of India (RBI) has released a warning statement concerning deceptive advertisements that lure borrowers with assurances of loan forgiveness. This advisory is in reaction to the ongoing promotion of such initiatives by various entities via print and social media. These unauthorized entities, without any legitimate authority, impose service or legal fees for the issuance of ‘debt waiver certificates.’ Bankers have reported instances where agents promise defaulting borrowers a ‘settlement’ with banks, aiming to reduce the borrower’s debt liability.