Summary of this article
RBI warns against fake loan waiver campaigns targeting borrowers
Fraudsters charge fees and issue fake debt waiver certificates
Borrowers should contact lenders directly and report suspicious offers
The Reserve Bank of India (RBI) has issued a warning to fraudulent campaigns that are offering loan waivers to borrowers. In a press statement dated May 4, 2026, RBI said that such deceptive deals are still being offered on various platforms, adding that it is a matter of concern to financial safety and consumer awareness.
RBI has observed that certain individuals and entities are approaching borrowers with the promise that their unpaid loans could be waived off. These claims can involve the issuance of so-called "debt waiver certificates", and requests to make advance payments in lieu of service or legal fees.
RBI has observed that certain individuals and entities are approaching borrowers with the promise that their unpaid loans could be waived off. These claims can involve the issuance of so-called "debt waiver certificates", and requests to make advance payments in lieu of service or legal fees.
How Do These Claims Persuade People
According to the RBI, the fraud is usually carried out by convincing borrowers that they can legally get rid of their dues to banks or non-banking financial companies (NBFCs). To process these requests, victims are charged fees, which can sometimes run into thousands of rupees.
In other cases, fake documents and reviews, curated in such a way that they appear genuine, are issued to borrowers to bring about a feeling of authenticity. But RBI has made it clear that these are false and do not have a legal standing.
What Are The Risks For Borrowers?
RBI has said that engaging with such entities can lead to scams and monetary losses. Borrowers not only lose the amount of money paid as fees, but they are still liable to their initial borrowings.
Moreover, these transactions may cause disruption of the credit system through misinformation and undermining the trust between lenders and borrowers. RBI has said that such measures might also have an indirect effect on depositors by impacting the stability of financial institutions.
What Should Borrowers Should Do?
RBI has recommended that borrowers should not transact with any third party that offers loan waivers. Rather, they should call directly to their respective banks or financial institutions to get the correct information about their loans.
Borrowers have also been advised to report suspected campaigns to the law enforcement agencies. The central bank has said that any valid relief measures, in the event that they are available, should be communicated through official channels, rather than through unsolicited offers.
Regulatory Position
Restating its position, RBI said that any organisation that makes such promises is indulging in misleading practices, and could be subject to legal action under the relevant laws. The same warning had been issued earlier by the central bank, but the continuation of such false claims and offers has led to a new advisory.
The recent warning is a reminder for borrowers to be cautious and check any claims thoroughly and using official channels, before making any financial decision, particularly one that involves an initial payment or a guarantee of loan forgiveness.
