Finance Minister Nirmala Sitharaman on Monday sharply criticised banks for mis-selling financial products, particularly insurance, and urged lenders to refocus on their core role of credit delivery and mobilisation of low-cost current account and savings account (CASA) deposits. Addressing reporters after her post-Budget interaction with the Central Board of the Reserve Bank of India, Sitharaman said depositors often suffer because mis-selling falls into a regulatory grey area between banking and insurance supervisors. ADVERTISEMENTShe said banks should devote greater attention to understanding customers’ financial positions, business cycles and individual requirements rather than aggressively pushing third-party products. The insurance regulator felt it is not their business because it is the banks which are doing it and RBI probably felt it is insurance business they are doing and I will not come into the picture. “The word mis-sell instead of offending anybody seems to be one more word on the lexicon,” the finance minister said.

Source: The Telegraph February 24, 2026 04:29 UTC