I wrote last week about the results of the research that household finance economist Renuka Sane and I did, which showed how banks mis-sell third-party financial products in India. I received a lot of emails from people who wrote in with their individual stories on bank mis-selling. A senior banker, now retired, wrote: “It’s an open secret no one wants to talk about... banks emphasise fee-based income generated out of third-party products like life insurance, general insurance and mutual funds. Some of you wrote in to ask why we did not name the banks in the study. Next, regulators need to align incentives so that a good outcome for the investors means a good outcome for the manufacturers and the distributors.

Source: Mint August 23, 2016 13:52 UTC