It has been reported that banks are finding it hard to fulfill the deadlines specified by finance ministry to sell the insurance products. Regulatory and Development Authority and the Reserve Bank of India have asked banks to act as insurance brokers and sell the insurance policies, but banks have not shown any interest in the decision. CMD of Punjab National Bank and Chairman of Indian Banks’ Association told that banks need to make up their mind and took the responsibility of becoming insurance broker. Some insurance companies segregated and some coupled with big banks for insurance selling. However it is little bit difficult for the banks since they will need to train the staff for selling insurance products and establish the IT systems said CEO of Canara HSBC OBC Life Insurance.
This step is taken to increase the sales of insurance product, but it seems it might lead to division in the distribution pie.