Module: General Practice
Q5: As per the RBI guidelines on responsible business conduct, what is the regulatory definition of compulsory bundling?
✅ Correct Answer: C
The correct answer is a bank making the availment of one product conditional upon the availment of another.
This means that a bank forces a customer to take a second product or service just to get the first one they actually want.
This rule applies no matter what the second product is.
It does not matter if the forced second product is made by the bank itself, or if it is a product from another company that the bank is just selling and marketing.
This means that a bank forces a customer to take a second product or service just to get the first one they actually want.
This rule applies no matter what the second product is.
It does not matter if the forced second product is made by the bank itself, or if it is a product from another company that the bank is just selling and marketing.
🧠 Real-World Scenario:
Imagine Mr. Sharma applies for a basic Home Loan. Suddenly, the bank manager says the loan will only be approved if he also buys a premium life insurance policy from them.
According to the rules, they can never make one product conditional upon buying a second one. This means the bank is committing "Compulsory Bundling" and can be heavily penalized for mis-selling.