New Delhi, March 20 -- At the time of taking a home loan, did the bank executive recommend that you take a home loan insurance policy? Legally, it is not mandatory to buy such a policy. However, many bank customers have reported that they were recommended to buy the policy.

On 23 February 2026, Finance Minister Nirmala Sitharaman warned banks against mis-selling insurance and other financial products. She advised banks to focus on their core business rather than spend time selling insurance when it is not required. The RBI has issued draft directions to banks to curb the mis-selling of financial products. In this article, we will understand what these directions are and how they will protect customers.

The RBI issued the draft direction...