No more unwanted insurance, mutual fund sales at banks: RBI
The RBI just dropped draft rules to make banks more transparent when selling things like insurance, mutual funds, and pensions.
The idea is to stop shady sales tactics and help customers actually understand what they're buying.
These new guidelines could kick in at different times, with some taking effect from July 2026, after public feedback is invited.
What does this mean for you?
If you've ever felt pressured by your bank to buy extra products, this is for you.
Banks will have to follow strict rules—no incentives from third parties for employees, limits on selling unregulated third-party products under the proposed RBI rules, and they'll need your clear consent before signing you up.
There'll also be better ways to complain if things go wrong.
While banks might see a dip in quick profits, the hope is you'll get honest advice (and fewer awkward sales pitches).