RBI mulls stricter norms to curb mis-selling, flags high microfinance interest rates

The Reserve Bank, worried over the rising incidents of mis-selling of financial products by banks and non-banks, is looking at bringing in more stringent norms to curb the practice wherein gullible customers get fleeced by greedy agents.

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“We are examining whether it necessitates framing of new guidelines to address mis-selling of financial products and services by banks and non-banks,” M Rajeshwar Rao, the senior most deputy governor of the central bank, said, while observing that pushing financial products, such as insurance and mutual funds, indiscriminately to unaware consumers may be detrimental to their well-being.