RBI issues final rules for sale of financial products, effective January
Mumbai, June 15 -- The Reserve Bank of India (RBI) on Monday issued final guidelines for the sale of financial products by banks and non-bank lenders, effective January.
In its draft guidelines in February, the banking regulator introduced a formal definition of 'mis-selling', covering the sale of products that are unsuitable for a customer's profile, providing misleading or incomplete information, selling without 'explicit consent', and 'compulsory bundling' of products.
The guidelines mandated explicit, recorded consent for every product, barred coercive cross-selling, and required full refunds and compensation where mis-selling is proven.
On Monday, the central bank said the directions adopt a principle-based and channel-agnostic ap...
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