Financial Mis-selling occurs when a financial product is sold to a customer using misleading information, false promises, or without considering the customer’s needs and risk profile.
Financial Mis-selling happens when banks, agents, or advisors push unsuitable financial products just to earn commissions or meet sales targets.
Customers may be misinformed about risks, returns, or terms, leading to financial loss.
In India, such practices are regulated and monitored by authorities like the Reserve Bank of India and the Securities and Exchange Board of India.
"A bank sells a risky insurance plan as a “fixed return investment” without explaining risks—this is financial mis-selling."