Expect insurance mis-sell norms soon

MUMBAI: RBI has said that it will introduce new guidelines to address mis-selling and forced selling of insurance. Additionally, it has granted regulatory relief to banks by postponing proposed regulations on liquidity requirements, provisions for potential defaults, and rules concerning subsidiaries. Instead, RBI will adopt a consultative approach before implementing these regulations.

In his first post-policy conference on Friday, RBI governor Sanjay Malhotra provided an assurance that norms requiring banks to hold more liquid funds and provisions for project finance will not be implemented before March 2026.

"There are trade-offs between stability and efficiency. We will keep this trade-off in mind while formulating regulations. It will be our attempt to strike the right balance, keeping in view the benefits and costs of each and every regulation," said Malhotra.

Some financial markets regulated by RBI, including foreign exchange, may operate for longer hours as the central bank has set up a panel to review trading timings.

Additionally, investors will be able to buy govt bonds in the secondary market by placing an order with their stock broker.