RBI move to double award may not reduce mis-selling

RBI has doubled the award that the banking ombudsman can give to Rs 20 lakh

Stories of mis-selling of financial products are aplenty. And the Reserve Bank of India (RBI) seems to be taking note of this. In its recent amendment to the Banking Ombudsman Scheme of 2006, the banking regulator has said customers who have been mis-sold third-party products such as insurance and mutual funds can be compensated up to Rs one lakh for expenses incurred, time lost and harassment suffered. The RBI has also doubled the award that the banking ombudsman can pass from Rs 10 lakh to Rs 20 lakh. 

Consumer rights activists and financial planners, however, believe that enhancing the powers