From warnings to regulation: Why RBI ran out of patience with bank mis-selling
Last Update Date: 05-10-2026
Published by India Today
Abhishek Kumar's role: Quoted
Abhishek Kumar said mis-selling costs people trust as well as money, and can cause liquidity problems and unplanned premium payments. He advised customers to ask for written reasons why a product suits them, check charges and lock-ins, and use the free-look period.
More of Abhishek's views on choosing an adviser
The article traces why the RBI brought in a framework against mis-selling by banks. It cites rising insurance complaints, sales targets for bank staff, and digital tricks such as pre-ticked boxes. It explains the new rules on defining mis-selling, banning forced bundling, requiring explicit consent and compensating customers.
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From warnings to regulation: Why RBI ran out of patience with bank mis-selling