The Reserve Bank of India’s (RBI) new guidelines on mis-selling of financial products and broker funding are expected to hit banks’ fee income, said bankers and analysts. Bancassurance is a widely used model where banks partner with insurance firms to distribute insurance products, earning significant fee income in the process. For instance, HDFC Bank, India’s largest private sector lender, generated Rs 6,308 crore in fee income from insurance sales in FY25, accounting for 13.8% of its other income.