Here is proof that banks mis-sell
The private sector banks mostly sell life insurance, no matter what is asked for. We also found that foreign banks don't let you in the door unless you have an account. The public sector bank and private banks' behaviour fits in with the incentives for the staff
Anybody who has walked into a bank branch in a metropolitan city would have been pushed towards a financial product that he or she didn’t want. Worse, they may have been forced, cheated into or otherwise pushed towards buying life insurance policies. I documented my own search for a Public Provident Fund account two years ago: https://bit.ly/1sye5F8 . A question asked very often by readers of this column is this: why don’t the regulators or government stop this coercion? The banking regulator, for a long time, took the view that mis-selling of third-party products was not their problem, but rested with the product regulators. The capital market regulator said that it could not tread on the Reserve Bank of India’s (RBI’s) toes. The insurance regulator put down these instances to the overactive imagination of some illiterate journalists.