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Banks Not To Use Unethical Practices: The Union Finance Ministry has as soon as once more given directions to public sector banks. The ministry has requested the nation’s premier banks to place in place a strong mechanism to curb ‘unethical practices’ in promoting insurance coverage merchandise to their clients. For this once more tips have been issued. Correct info will not be given to the purchasers on the market of insurance coverage merchandise. Many occasions such complaints are coming to the fore.
letter to all banks
According to media experiences, the Finance Ministry has requested all of the banks to take concrete steps on this matter. In a letter to the chairmen and managing administrators of public sector banks, the ministry stated that the Department of Financial Services has obtained a number of complaints relating to the sale of insurance policies by banks and life insurance coverage firms to financial institution clients. Fraudulent and unethical strategies are being adopted for
what’s the entire matter
The Department of Financial Services has come throughout a number of instances the place life insurance coverage insurance policies have been offered to clients above the age of 75 years in Tier II and III cities. Bank branches promote the merchandise of their insurance coverage firms. When the purchasers refused to take the coverage, the department officers would vehemently clarify that they had been underneath strain from above. When clients go to take any sort of mortgage or purchase a hard and fast deposit, they’re additionally requested to take an insurance coverage product.
Circular issued earlier additionally
The division has already issued a round on this regard, stating that no financial institution ought to pressure clients to take insurance coverage from a selected firm. The Central Vigilance Commission (CVC) has objected that incentives for promoting insurance coverage merchandise not solely put strain on subject workers but in addition have an effect on the core enterprise of banks.
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