Mumbai: To lend transparency, the Reserve Bank on Monday directed banks to disclose the commission it received from mutual funds and insurers for referring their products to customers.
"It has since been decided that banks should disclose
to the customers, details of all the commissions/other fees
(in any form) received, if any, from the various mutual fund,
insurance, other financial companies for marketing, referring
their products," the RBI said in a notification.
The above instructions, the RBI said, would come into
force with immediate effect.
Banks need no prior approval of the RBI for bancassurance
or for referring mutual funds to their customers.
Bureau Report
First Published: Tuesday, November 17, 2009, 00:15