Sales Targets or Trust? RBI Sounds Alarm on Banks’ Mis-selling Epidemic

India’s banking sector is under fire as the Reserve Bank of India (RBI) and the Finance Ministry crack down on rampant misselling of financial products, especially in rural and semiurban areas. From insurancelinked investments to bundled wealth products, banks are accused of pushing unsuitable offerings to meet aggressive sales targets—often at the cost of customer trust and financial security.

 

Key Highlights:

Unless banks overhaul their sales culture and regulators enforce with teeth, India’s financial inclusion dream risks turning into a cautionary tale.

 

Sources: Moneycontrol, Rediff Money, Economic Times