Sitharaman Calls 'Mis-Selling' By Banks Her Pet Peeve, Urges Them To Focus On Core Business

During a recent address, Finance Minister Nirmala Sitharaman expressed her strong discontent regarding the prevalent issue of 'mis-selling' by banks. This unethical practice involves the aggressive promotion of financial products, such as mutual funds and insurance, that may not align with a customer's actual needs. Sitharaman highlighted that this behavior undermines the trust between banks and their clients, urging financial institutions to realign their focus towards their core business operations rather than engaging in misleading sales tactics. She emphasized the importance of customer education and transparency, noting that banks should foster genuine relationships with clients based on their financial needs and goals. The finance minister's remarks come amid broader concerns about consumer protection in the banking sector, as well as ongoing efforts to enhance regulatory frameworks to safeguard customers from such practices. By addressing these issues, Sitharaman aims to reinforce ethical standards within the banking industry, ensuring that financial institutions prioritize responsible selling and maintain the integrity of their services.