RBI Governor warns banks, insurance companies against mis-selling of products

STC NEWS DESK
MUMBAI, FEBRUARY 08 (STC): The RBI Governor, Sanjay Malhotra, on Friday in his post-Monetary Policy Committee (MPC) meeting presser, governor came down heavily on including banks and insurance companies for mis-selling of financial products. The RBI Governor’s warning came in the wake of reports that many of the banks and insurance companies have been accused of mis-selling their financial products under pressure to meet their sales target.

The RBI chief while replying to a query on mis-selling of financial products said that any violation regarding mis-selling by banks will be taken “very seriously”.
Mis-selling of products is not something new. Banks and insurance companies have been indulging in this illegal sale of financial products since the day bancassurance came into being. Even as financial regulators such as RBI were made aware about the menace in the past as well, the situation didn’t improved. In fact, mis-selling is growing rampantly.
According to the RBI guidelines, any regulated entities responsible for mis-selling products like insurance policies and mutual funds shall attract penalties and disciplinary actions. (STC)