How to protect yourself from mis-selling by banks? 7 tips for savvy banking
Reserve Bank of India. To avoid falling victim to mis-selling, customers must exercise caution and conduct thorough research before purchasing any financial product. Overemphasis on profitability: Some bank representatives may focus solely on the profitability of a product, without adequately considering whether it suits the customer's needs and risk appetite.
This can lead to the sale of inappropriate products that may not align with the customer's financial goals. Concealment of information: Mis-selling occurs when bank staff deliberately withhold crucial information about a financial product, such as charges, risks, or limitations. This lack of transparency can result in customers unknowingly taking on financial risks they were not aware of.
Pressure tactics: Banks sometimes employ high-pressure sales techniques to persuade customers to purchase a product quickly. These tactics create a sense of urgency and prevent customers from thoroughly evaluating the product's suitability and making an informed decision. To address these concerns and protect the interests of customers, the Insurance Regulatory and Development Authority of India (IRDAI) has established rules and regulations that banks and financial institutions must adhere to.
These regulations aim to promote fair practices and transparency in the sale of financial products. It is important for customers to be aware of these rules and use them as a guide when engaging with banks. Being aware of the IRDAI rules can empower customers to make informed decisions.
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