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The finance ministry has advised public sector banks (PSBs) not to force-sell insurance products to customers and said such a practice impacts the core businesses of banks.
Banks have been asked to issue instructions to concerned vertical heads to put in a mechanism for avoiding unfair and unethical practices of selling life insurance policies to customers.
In a communication to banks last month, the finance ministry said, “Department has received a complaint that fraudulent and unethical practices are adopted by banks and life insurance companies (channel partners). It is for procuring life insurance policies from the bank customers.”
The ministry
