The Reserve Bank of India (RBI) has cautioned public not to fall prey to misleading advertisements offering loan waivers to borrowers. 

 The central bank has urged the citizens to report such incidents to law enforcement agencies.

The move came after the RBI noticed such misleading ads appear in print media as well as social media platforms to entice borrowers.

The RBI advised individuals to exercise caution and refrain from engaging with entities making dubious promises of loan waivers. 

The central bank also identified several entities engaged in promoting these dubious schemes across print and social media platforms.

"These entities seem to be actively promoting many such campaigns in the print media as well as social media platforms. There are reports of such entities charging a service/legal fee for issuing ‘debt waiver certificates’ without any authority," the RBI said.

The central bank further said that in certain locations, campaigns related to debt waiver offers are being run by a few persons, which undermine the efforts of banks in enforcing their rights.

"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," the RBI said.

The RBI cautioned that associating with such entities can result in direct financial losses.