'Privatisation of Public Sector Banks in Disguise - Bancassurance - Insurance in Banking’

The introduction of Bancassurance model in India has changed the very role of Public Sector Banks (PSBs) in —shifting focus and priority from loans and deposits to sell insurance. Experts warn it is a backdoor to privatisation, weakening the social mission of banking system. They argue, while banks and high management earn hefty commissions, customers face mis-selling. Farmers and small businesses lose access to credit. PSBs deviate from core banking activities and their motive become profit making machines.