Misselling by banks and trapping customers

This is an excellent move from Money Life.New generation banks in particular have appointed some relationship managers and they trap innocent and some gullible customers by making them invest in some of their toxic products assuring the best of return. Once the money is invested these relationship manager are not to be seen in picture and banks cut their commission and brokerage from the money invested. The relationship gets spoiled once for all but banks win in the process. There does not seem to be any check either by the RBI or SEBI on such practices and the banks fail to tell as to whether the products in question have the approval from SEBI.Once the investor comes to know of the trap and insists on refund of the amount the banks refund part of the amount depending on the investors influence, contacts, position and fighting spirit etc. Most of the investors suffer and they being senior citizens have to either forgo this money and forget it for ever. RBI or SEBI should ask the details of such traps and the fate of these investments. Being Senior citizens, they lose track of these transactions and they do not know whom to approach and how to get back the money.The banks indulgence in such unethical practices should be nipped in bud itself and for this SEBI and RBI should have a joint system of supervision. Mr Sharma's case is one such instance which Money Life beautifully tackled and brought to a sensible and logical conclusion.
Dr.T.V.Gopalakrishnan.
(This comment is in response to an article Money Life Foundation memorandum to RBI on misselling of products in Money life dated 19/4/13)