Financial Services Secretary Vivek Joshi said that the Department of Financial Services (DFS) was continuously receiving complaints that banks and life insurance companies were adopting fraudulent and unethical methods to get customers to buy policies. Joshi said that in view of these matters, banks have been made sensitive. Let us know about it.
The government has asked public sector banks to stop mis-selling of insurance products. It has also been asked to ensure the protection of the interests of the account holders. Financial Services Secretary Vivek Joshi said the Department of Financial Services (DFS) was continuously receiving complaints that banks and life insurance companies were adopting fraudulent and unethical methods to get customers to buy policies.
Joshi said that in view of these matters, banks have been made sensitive. He said that banks have been asked to give utmost importance to the interests of account holders. Several cases have also come to light in which life insurance policies have been sold to customers above 75 years of age in tier II and III cities. Generally banks try to sell the products of their subsidiary insurance companies.
If customers protest against this, the branch officials say that there is pressure from above. When customers go to take any kind of loan or invest in fixed deposits, attempts are made to sell them insurance products.
Joshi said that banks have been asked to review their gold loan portfolio. This instruction has been given for not following the rules issued by the government.
