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MUMBAI: RBI has issued a cautionary statement regarding misleading advertisements that entice borrowers with promises of loan waivers. The statement is a response to the active promotion of such campaigns by entities through print media and social media platforms. These entities, lacking any authority, charge a service or legal fee for the issuance of ‘debt waiver certificates.’
“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. It may also be noted that associating with such entities can result in direct financial losses,” RBI said in a statement.
Bankers have reported instances where agents promise defaulting borrowers a ‘settlement’ with banks, aiming to reduce the borrower’s debt liability. Advertisements from these agents advise lenders not to succumb to pressure but to provide an opportunity for settlement. However, bankers assert that a ‘one-time settlement’ is a prerogative of lenders and involves due process.
“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. It may also be noted that associating with such entities can result in direct financial losses,” RBI said in a statement.
Bankers have reported instances where agents promise defaulting borrowers a ‘settlement’ with banks, aiming to reduce the borrower’s debt liability. Advertisements from these agents advise lenders not to succumb to pressure but to provide an opportunity for settlement. However, bankers assert that a ‘one-time settlement’ is a prerogative of lenders and involves due process.
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