scorecardresearchSBI bank customer reports ₹23K deduction for insurance. This is what the

SBI bank customer reports 23K deduction for insurance. This is what the bank says

Updated: 05 Sep 2023, 04:17 PM IST

Misrepresentation of insurance policies and certain investment products like ULIPs and mutual funds has become a widespread occurrence in numerous banks.

SBI bank customer complains against possible misselling.

SBI bank customer complains against possible misselling.

Several SBI customers have taken to social media recently to voice their grievances, alleging unauthorized deductions from their accounts for insurance premiums, as reported in the Financial Express

On September 1, 2023, a customer of SBI reported an unauthorized debit of 23,451 from his savings account. Over the past few weeks, numerous other SBI customers have expressed similar complaints with the bank on the X social media platform (erstwhile Twitter).

Nevertheless, the bank consistently asserts that choosing insurance and other investment products remains entirely at the discretion of customers. Should any transaction be conducted by the bank without their consent, customers have the option to file a complaint.

How did SBI respond?

SBI tweeted in response, “Kindly note that opting for insurance and other investments is purely voluntary and our branches provide the information for the benefit as well as awareness of our customers. We maintain a high standard of ethics while providing services to the customers and no transaction is done in the account of the customer without his/her consent,” while adding, “Also note that any type of insurance or investment is not mandatory to avail any type of service from us.”

Grievance redressal for SBI customers

SBI clients have the option to file a complaint regarding the misrepresentation of insurance policies or other investment products through the website. The bank has clearly stated, “If you encounter any such situations, kindly submit a complaint through the following link. Select ‘Personal Segment/Individual Customer’ under the category ‘General Banking’, then choose ‘Operation of Accounts’ and ‘Disputed Debit/Credit Transaction’. In the last column, please provide a brief description of the issue. Our dedicated team will investigate your concern promptly.”

Beware of insurance misselling practices

The widespread occurrence of insurance policy misselling and certain investment products, such as Unit Linked Insurance Plans (ULIPs) and mutual funds, has become a prevalent issue across various banks. Customers should steer clear of purchasing policies or products they do not require. If, however, a bank has sold you such products without your consent, it is advisable to promptly file a complaint with the bank or seek assistance from the RBI’s banking ombudsman.


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First Published: 05 Sep 2023, 04:17 PM IST