Branch2 Intelligence

Tricked Into Buying Insurance Or Mutual Funds? RBI's New Rules Could Help You Get A Full Refund

IN · 2026-07-03

Key takeaway

RBI bans commission models that incentivize mis-selling of insurance and mutual funds, effective Jan 1, 2027.

Step 1RBI bans commission-based incentives that encourage mis-selling of insurance and mutual funds.
Step 2Financial institutions face increased liability for refunds and must restructure sales compensation.
Step 3Traditional bancassurance and mutual fund distributors see revenue pressure, while digital-first platforms gain competitive advantage.
Step 4UK SMEs with Indian operations or exposure to Indian financial services may face higher compliance costs and need to adapt distribution models.

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