To curb mis-selling, RBI should get banks to reward customer-orientation
Banks could develop a matrix that indicates which products are potentially suitable for a customer, ranking them by priority. This prioritization should be based on a risk analysis of product features, risk-return attributes, time horizon, complexity, fee structure etc, mapped to the customer’s age, income, level of financial literacy and risk tolerance. A full analysis would still have to be undertaken at the time of sale.
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