Banks forcibly promote insurance coverage merchandise… complaints are coming to the Finance Ministry – India TV Hindi

Authorities has requested public sector banks to cease mis-selling of insurance coverage merchandise and guarantee safety of the pursuits of account holders. Monetary Companies Secretary Vivek Joshi mentioned this. He mentioned that the Division of Monetary Companies (DFS) was repeatedly receiving complaints that banks and life insurance coverage firms had been adopting fraudulent and unethical strategies to get clients to purchase insurance policies. Joshi mentioned that in such a state of affairs, banks have been made delicate on this matter.

Makes an attempt are made to forcibly promote insurance coverage merchandise

“Banks have been requested to offer utmost significance to the pursuits of account holders,” he mentioned. There are cases the place life insurance coverage insurance policies had been bought to clients above 75 years of age in tier II and III cities. Often banks attempt to promote the merchandise of their subsidiary insurance coverage firms. If clients protest towards this, department officers say that they’re beneath strain from above. When clients go to take any type of mortgage or spend money on mounted deposits, makes an attempt are made to promote them insurance coverage merchandise.

Central Vigilance Fee expressed objection

It was additionally reported that the Central Vigilance Fee (CVC) has additionally objected to this because the strain to promote insurance coverage merchandise impacts the core enterprise of banking and the lure of fee and incentives for workers could compromise the standard of loans. Is.

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