New Delhi, June 27 -- You walk into a bank to get a home loan for your dream house, but you walk out with something you never asked for: an insurance policy bundled into your loan because the bank official told you it was mandatory. If that sounds familiar or if you know someone who's had a similar experience, you know the problem is widespread.

Banks, by virtue of their vast branch network, are India's largest distributors of financial products. But when selling third-party products becomes less about finding the right fit for the customer and more about meeting sales targets, like by pitching products as mandatory, promising superior returns or creating a fear of missing out, misselling becomes inevitable.

More often than not, the mos...