New Delhi, April 23 -- For many Indians, trust in their bank is built over decades. But when that trust is leveraged to sell insurance products that may not suit a customer's needs, the line between fiduciary advice and sales blurs.

The bancassurance model-where banks act as agents for insurance companies-comes with a structural conflict of interest. Customers often walk away with policies that do not align with their financial goals.

The Reserve Bank of India (RBI), in its new draft rules, has called for significant structural changes to curb mis-selling. While experts Mint spoke to do not expect a sharp dip in sales, they anticipate tighter scrutiny and changes in incentive structures.

The problem lies in incentives. Bank relationshi...