State-run banks are likely to write to the finance ministry on cross-selling commissions over selling products like insurance and mutual funds. The government had expressed concerns to the banks over this issue.

Cross-selling means any employee of a particular bank selling the products of its subsidiaries. For example, a State Bank of India (SBI) employee selling mutual fund products of SBI Mutual Fund or life and general insurance products of SBI Life and SBI General.

Finance ministry had expressed concern over the mis-selling of these products and asked PSU banks to stop paying commission to their employees for cross-selling of products.

The PSUs banks are planning to write to the finance ministry to defend the cross-selling medium saying that these lines of business are very important for the subsidiary.

First Published:Oct 15, 2018 10:34 PM IST