RBI, Banks and Rotten Incentives: Srinath Sridharan on Mis-selling of Insurance Products

Indian savers did not suddenly become reckless. They were relentlessly prodded.

In this episode of basispointinsight.com, author, commentator and corporate advisor Srinath Sridharan breaks down the storm over insurance mis-selling, the RBI’s new push, and why banks turned from trusted advisors into aggressive product peddlers.

We discuss:

🔹How banks bundle loans, savings accounts and insurance into coercive one–signature-many-products deals.

🔹Why insurance, a protection product, has been sold as an investment for two decades, and how mutual funds also got dragged into the same game.

🔹Why there have been almost no large, visible penalties on big insurers despite widespread complaints.

🔹The conflict of interest when banks own insurers and depend on third-party product fees to boost profits.

🔹What regulators, banks and consumers must do next to rebuild trust and make customer centricity more than a poster slogan.

If you have ever:

🔹Been forced to buy insurance with a loan,

🔹Clicked “I agree” and discovered a bouquet of unwanted products, or

🔹Fought a health insurance claim that paid far less than you expected, this conversation will feel painfully familiar.

Watch till the end for Srinath’s take on:

🔹Why lazy banking and copycat strategies hurt MSMEs and real retail banking.

🔹How data leaks and DSAs quietly undermine your consent.

🔹Whether Indian banks can become genuine financial advisors again, not just salespeople with cleaner paperwork.