Mis-selling is the practice of selling a financial product in a misleading or unsuitable way, often by hiding risks or giving false promises.
Mis-selling occurs when banks, agents, or advisors push products that do not match the customer’s needs, risk profile, or financial goals.
This often happens due to commission-driven sales targets, where the seller prioritizes profit over customer interest.
In India, such practices are monitored by regulators like the Reserve Bank of India and the Securities and Exchange Board of India.
"A customer is sold a high-risk investment as a “safe fixed return product”—this is mis-selling."