RBI warns public against misleading loan waiver ads on Facebook, Instagram

The Reserve Bank of India has cautioned the public not to fall prey to misleading advertisements related to loan waiver offers on social media platforms like Facebook, Instagram and others. In a statement, RBI said that it has noticed certain misleading advertisements enticing borrowers by offering loan waivers. It further noticed that these entities seem to be actively promoting many such campaigns in the print and social media platforms.   

There are reports of such entities charging a service or legal fee for issuing ‘debt waiver certificates’ without any authority, it added in the same statement. 

The RBI has observed instances where certain individuals are orchestrating campaigns in specific locations, thereby thwarting the endeavors of banks to assert their rights over the securities pledged to them. The RBI notes that these entities are falsely asserting that obligations to financial institutions, including banks, do not require repayment.  

The statement emphasizes that such actions not only jeopardize the stability of financial institutions but also compromise the interests of depositors. The RBI further warns that affiliating with such entities may lead to financial losses. 

The RBI cautions borrowers against participating in misleading campaigns and encourages them to report such incidents to law enforcement agencies. 

Earlier this year, RBI stated that it does not have any plans to introduce distinct regulations governing the activities of social media influencers in the financial markets. "The RBI is not planning to issue any separate guidelines to regulate financial market influencers since the Sebi is already doing so," RBI Governor Shaktikanta Das said.