Kathmandu. India’s Finance Minister Nirmala Sitharaman has warned banks to avoid misleading customers by introducing financial products including insurance. “Banks should focus on their core business of raising deposits and providing loans,” she said. \u2019<\/p>\n
Sitharaman also asked banks to focus on their core business. She said, “Banks are asking customers to buy insurance products despite being insurance companies. The Reserve Bank of India (RBI) ignored it, thinking that it was under the purview of insurance regulator IRDAI. IRDAI believes that banks are regulated by the RBI. Customers ask why they are asked to buy insurance when they mortgage their property to the bank for a home loan. \u2019<\/p>\n
Sitharaman added, “I am happy that the RBI is issuing guidance on mis-selling. A message should be sent to the banks that they cannot indulge in mis-selling. \u2019<\/p>\n
On February 11, the Reserve Bank of India (RBI) issued a new draft rules on mis-selling. These rules state that if banks sell any product or service to the customer in a wrong way, they will have to refund the full amount to the customer and compensate for any loss. The rules will come into effect from July 1. <\/p>\n
“Banks are spending more time on selling insurance and less time on core banking,” Sitharaman said. Therefore, I advise banks to focus on increasing savings and current account deposits. \u2014Agency<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. India’s Finance Minister Nirmala Sitharaman has warned banks to avoid misleading customers by introducing financial products including insurance. “Banks should focus on their core business of raising deposits and providing loans,” she said. \u2019 Sitharaman also asked banks to focus on their core business. She said, “Banks are asking customers to buy insurance products […]<\/p>\n","protected":false},"author":16,"featured_media":285580,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45044,45159],"tags":[],"class_list":["post-288579","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/288579","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=288579"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/288579\/revisions"}],"predecessor-version":[{"id":288581,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/288579\/revisions\/288581"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/285580"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=288579"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=288579"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=288579"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}