The purchase of any financial instrument should be guided by sound decision-making rather than any sort of salesmanship tactics. In order to better protect consumers from any form of mis-selling practices, the Reserve Bank of India (RBI) has been actively involved in implementing measures aimed at curbing mis-selling practices by regulated firms, including banks and NBFCs (non-banking financial companies).<\/p>\n\n\n\n
It is imperative for the individual investor to ensure that any financial product chosen by him matches his own financial objectives, investment period, and risk profile. The financial product is usually offered through financial intermediaries such as banks. Therefore, it becomes vital that the investors have access to all information regarding the characteristics, associated risks, and conditions of the financial product. The provision of accurate information assists in making informed decisions on the choice of the most suitable financial product.<\/p>\n\n\n\n