Reserve Bank of India (RBI) has sharply tightened the definition of mis-selling, removing one of the biggest defences used by banks and insurance companies that the customer had explicitly consented by signing documents.
The Reserve Bank of India (RBI) has proposed a ban on incentives paid by third parties to bank staff for selling insurance, mutual funds and other products to curb the mis‑selling of financial products.
"A bank shall ensure that its policies and practices neither create incentives for mis-selling nor encourage employees/DSAs (direct sales agents) to 'push' the sale of products/services," the RBI... .