In a press release dated May 4, the RBI cautioned the public against unauthorised entities and individuals circulating misleading claims related to debt relief, including fake “loan waiver certificates” and other financial assurances.
The central bank also reiterated its earlier advisory issued in December 2023, warning borrowers not to engage with such groups.
MFIN said it has observed an increase in organised misinformation efforts and borrower mobilisation in recent months, particularly in parts of North India.
According to the industry body, some borrowers have been influenced to withhold repayments based on unverified claims linked to loan waivers, the so-called “Coin Act”, and other informal narratives circulating through local networks.
The organisation noted that such campaigns create confusion among borrowers, weaken credit discipline, and undermine trust in the formal financial system. It also warned that financially vulnerable households may be exposed to coercion and financial harm through interactions with unauthorised intermediaries.
MFIN Managing Director and CEO Alok Misra said the RBI advisory is significant in addressing misleading narratives around loan waivers. He added that such claims disrupt repayment behaviour and ultimately harm borrowers by affecting their credit standing and access to formal finance.
He further said MFIN and its member institutions are conducting borrower awareness initiatives, including Microfinance Awareness Programmes (MFAPs), to promote financial literacy, responsible borrowing, and awareness about grievance redress mechanisms.
MFIN said it will continue expanding outreach efforts at the grassroots level across states to help borrowers make informed financial decisions and reduce exposure to fraudulent or misleading campaigns.
