Trusted Advisor Mis-Sold You? Your ₹3L at Risk
Your bank RM, insurance agent, or 'helpful' neighbour may be pushing products that earn them commission, not you returns. Blind trust in people you know can cost lakhs. Here's how to verify before you sign.
The ULIP mis-selling wave cost Indians more than the entire IPL media rights deal — and most victims never complained.
Average Indian household loss from mis-sold financial products via trusted advisors
Key Takeaways
Ask any advisor — bank RM, agent, or friend — to disclose their commission or incentive in writing before you invest or buy any financial product.
Cross-check any product recommendation on SEBI's or IRDAI's official portals, or use a SEBI-registered fee-only financial planner who charges you directly, not a commission.
If you've been mis-sold a product in the last 3 years, file a complaint via the RBI Integrated Ombudsman (bankingombudsman.rbi.org.in) or IRDAI's Bima Bharosa portal at zero cost.
Your bank RM, insurance agent, or 'helpful' neighbour may be pushing products that earn them commission, not you returns. Blind trust in people you know can cost lakhs. Here's how to verify before you sign.
Here's what happened: Bank relationship managers and insurance agents earn commissions on products they sell — creating a built-in conflict of interest with your financial goals.. SEBI and IRDAI have both recorded rising complaints about mis-selling through personal and semi-personal networks, including family friends and colony 'experts'.. Products like ULIPs, endowment plans, and market-linked debentures are frequently mis-sold by trusted contacts, often without full disclosure of charges or lock-in periods..
What you should do: Ask any advisor — bank RM, agent, or friend — to disclose their commission or incentive in writing before you invest or buy any financial product.. Cross-check any product recommendation on SEBI's or IRDAI's official portals, or use a SEBI-registered fee-only financial planner who charges you directly, not a commission.. If you've been mis-sold a product in the last 3 years, file a complaint via the RBI Integrated Ombudsman (bankingombudsman.rbi.org.in) or IRDAI's Bima Bharosa portal at zero cost..
Fee-only financial planners registered on SEBI's RIA (Registered Investment Adviser) list charge a flat fee and earn zero commissions — their advice is structurally conflict-free. Find them at sebi.gov.in.
For complaints against banks or NBFCs, our RBI complaint guide explains the free RB-IOS 2026 route.
Explore TARA — Your Financial Co-Pilot
Retirement, tax, EMI, refinance and savings calculators — all free. Get a plan aligned to YOUR income, goals and CIBIL.
Try TARA — Free →References
- [1]
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.
Every story here posts to X the moment it breaks. Follow @gocredit_news →