The Reserve Bank of India has said that customers’ consent does not legitimise the sale of an unsuitable financial product, as part of its draft rules to check mis-selling by banks. The new norms will act as a deterrent against this rampant practice which erodes public trust in the banking system, explains Saikat Neogi l How mis-selling happens in banks OVER THE YEARS, customers have complained how they were being pushed into buying insurance, mutual funds or other third-party products by banks without fully understanding them. Most often, unit-linked insurance products are sold to senior citizens as fixed deposits and long-term insurance products are sold as limited pay options with high surrender value.