This week, Monika highlights how Indian banks are aggressively mis-selling financial products, especially to the elderly and vulnerable. A recent experience with her father at a bank shows just how predatory these practices have become. New moves by the Ministry of Finance and RBI signal growing concern—banks have now been told to stop staff incentives for insurance sales, and the RBI is exploring stricter guidelines. A revealing fintech report shows banks earned over ₹21,000 crore in FY24 from commissions, often from unsuitable product sales. Nearly half of all life insurance policies are discontinued within five years, and poor product design combined with a commission-first mindset has created a system stacked against customers. Monika calls on listeners to share their own experiences and push for change using the hashtag #StopMisselling.

She also breaks down what "mis-selling" really means. It’s not just bad advice—it involves deliberately hiding product risks, recommending financial instruments based on commissions instead of customer need, and bundling high-cost products with simple banking services like FDs or loans. Victims are often the least protected: senior citizens, low-income families, and those unfamiliar with financial jargon. Monika walks through key red flags to watch out for at the bank and shares tips on how to avoid being manipulated into buying harmful financial products.

In listener questions, a young Chartered Accountant, Hardik Solanki, asks for guidance on switching careers from accounting to financial advising. Another listener, Anjana, 24, seeks advice on buying term insurance and whether riders or limited pay options make sense. A third listener, Ujjawal, wants to know how to withdraw funds efficiently in retirement after 25 years of investing.

Chapters:

(00:30 – 08:41) Shark-infested banks: How mis-selling became a national crisis and what’s finally changing

(08:42 – 09:57) Decoding mis-selling: What it means, what it looks like, who it targets

(10:00 – 14:00) Switching to financial advisory: Qualifications, risks, and the long game

(14:01 – 16:00) Term insurance at 24: Do you even need it and what riders to look at

(16:01 – 19:06) Retirement withdrawals: Rebalancing equity, debt, and staying the course

https://1financemagazine.com/surveys/mis-selling-menace

https://x.com/BahlKanan/status/1932379980237095209

https://www.nism.ac.in/investment-adviser-level-1/

https://www.sebi.gov.in/legal/regulations/aug-2023/securities-and-exchange-board-of-india-investment-advisers-regulations-2013-last-amended-on-august-18-2023-_76357.html

https://aria.org.in/

If you have financial questions that you’d like answers for, please email us at ⁠[email protected]⁠

Monika’s book on basic money management

⁠⁠https://www.monikahalan.com/lets-talk-money-english/⁠⁠

Monika’s book on mutual funds

⁠https://www.monikahalan.com/lets-talk-mutual-funds/⁠

Monika’s workbook on recording your financial life

⁠⁠https://www.monikahalan.com/lets-talk-legacy/⁠⁠

Calculators

⁠⁠https://investor.sebi.gov.in/calculators/index.html⁠⁠

You can find Monika on her social media @monikahalan. 

Twitter ⁠⁠@MonikaHalan⁠⁠

Instagram ⁠⁠@MonikaHalan⁠⁠

Facebook ⁠⁠@MonikaHalan⁠⁠

LinkedIn ⁠@MonikaHalan⁠

Production House: ⁠www.inoutcreatives.com⁠

Production Assistant:⁠ Anshika Gogoi