RBI cautions public against misuse of cancelled NBFC certificate of registration

Apex bank says imposters promise loans to needy public at attractive rates, collect processing fees and then vanish

 

The Reserve Bank of India (RBI) has cautioned the public against activities of some entities fraudulently impersonating as non-banking finance companies (NBFCs) registered with the Reserve Bank of India, by forging the Certificate of Registration cancelled by the central bank.

“It is understood that entities/imposters are promising loans to the needy public at attractive rates and collecting money from them as processing charges for the loans/advances and vanish with the money so collected,” said RBI. The regulator has said such fraudulent activities/offers are punishable under the law.

“Members of public are advised to exercise due caution and not to fall prey to such fraudulent activities/offers and to inform the local police authorities if any such activities come to their notice.”

RBI has also requested the public to not make any payment or financial commitment to any individuals/entities without verifying the veracity of the transaction, the credentials and genuineness of licence or Certificate of Registration issued by the appropriate regulatory authority to function as a financial institution.