RBI warns against fly-by-night operators

The Reserve Bank has cautioned the public to verify credentials of entities promising loans before entering into any deals. The central bank said cases have been reported where such entities have disappeared after accepting processing fees from the public.

The central bank said that it has observed that certain entities are issuing advertisements in newspapers offering personal loans, loans against property and other loans at very low rates of interest.

"It has also come to the notice of the Reserve Bank that some of these entities are cheating the public by charging processing fees upfront and disappearing thereafter," the RBI said in a statement.

The advertisements inserted by these entities carry mobile phone numbers to lure prospective victims to contact them, the bank, said adding that certain entities also claim to be registered with the central bank.

The bank has advised people to proceed with utmost caution while dealing with such entities and to verity their credentials before dealing with them.