A report of Reserve bank of India stated that, in case of buying and selling of financial products the principle governing the transaction should shift on seller instead of the buyer. Instead of the let the buyer beware it should be le the seller beware.
Executive director of RBI stated that once they shift the responsibility on the seller and will bring the principle, let the seller beware in practice, it will force the sellers to take the responsibility of the financial products while selling. This will stop the sellers from offering the inferior quality products. This needs to be included in the principles in a Customer’s Charter of Rights and Duties banks have towards their customers.
There is a need to include this principle and shift the responsibility towards the seller, so that the customer can avail the best financial product according to his needs and financial requirements i.e. customer must have a right to suitability. The principle vests the burden of proving that shortcomings in service was absent from the seller’s side.