Relationship Manager – Who are they and what they do ?

POSTED BY Jagoinvestor ON June 8, 2012 COMMENTS (167)

In this article, we will discuss “Relationship managers” . I got an interesting comment about “Relationship Managers” on my facebook wall from Prasad when we were discussing recent HDFC Life offering on 100% Free Financial Planning through snapdeal. Here is Prasad’s sharing on his relationship manager and what happened with him.

I am totally disappointed with HDFC Bank , every time my RM calls, he wants me to sell an insurance plan. If i tell him that I have other commitments at this point of time, he tells me he can get me a credit card if I dont have one and use it to buy the insurance plan.. It can’t go down more !! had so much respect to this bank.. But the concept of RMs is the most misleading thing !!!

Focus on this comment and re-focus on one sentence – “he tells me he can get me a credit card if I dont have one and use it to buy the insurance plan” . What does it say? What comes to your mind when you read this? It shows that there is an extreme focus on performance, there is extreme pressure on meeting targets on relationship managers. Their jobs are at stake at times and there is a do or die situation.

What are Relationship Managers ?

Relationship Managers are generally assigned to a customer who have more money and resources than others, who has more longer-term relationship with Banks, you are told that you will be taken special care by this relationship manager, at times you can directly talk to him for any issues. All the people having more than a certain net-worth or salary are assigned, relationship managers.

You are told that he is supposed to help you out whenever you want and he will be available to you all the time when you need him. However relationship managers are generally MBA Marketing guys, who are hired to take the sales to go up, they are responsible to bring business by hook or by crook. The worst part of relationship managers is that their attrition rate is so high, that by the time you figure out that you 90% is-bought and were 10% missold a financial product, the relationship manager is not working in the same company anymore, he has moved to another job now.

I read this funny incident on Hemant’s article comment section where Shinoj is sharing something about customer care people lie

Recently got a call from kotak mahindra bank regarding some bullshit insurance policy. Usually whenever marketing calls comes to my mobile, I use to say “sorry, Not interested”. But this time I decided to elaborate why I am not interested by telling a lie. All I told was “Actually I was interested in this product and had fixed appointment with your relationship manager on last friday. But he dint came. So not interested.” The marketing guy replied that he will check back. After two or three minutes i got a call from them again. “Sir we are extremely sorry. We called that relationship manager. He was not able to come to you because he met with an accident that day. shall he come today?”

What does a relationship manager know about you?

A relationship manager knows how much money do you have in your bank account, he knows for how long it is lying there. He knows the recent credit and recent debit from your bank account. He can figure out that one of your FD maturity and is now “available” for the massacre. He can then call you or meet you and show you an amazing product, if you want to invest and “if you have any money” . Obviously he knows you are sitting on a 10 lac cash right now. He is innocent, he is just telling you about something FYI, after all, that’s his job!

Remember, If a relationship manager recommends you some product and if you manage to make good returns or it turns out to be a good thing for you, it’s mostly accidental! So now, if you are an HNI or if you are going to get a relationship manager from your bank, broker or whatever it is, just make sure you know that its most probably going to add to your headache. He will keep on pushing you, convince you about opportunities and prove to you how your money is getting wasted sitting at your bank account. I remember a comment made by Subra on one of his articles on relationship managers and doctors.

“Doctors over-diagnose and Relationship Managers over-analyze your portfolio. Doctors recommend treatment and drugs, RMs recommend ULIP.”

Relationship Manager interview

I can only imagine the interviews which banks or companies take for hiring relationship managers.

Question : Tell me something about why you will be a good relationship manager at our bank ? And What qualities in you makes you a great candidate ?

Candidate 1 : I have completed this amazing course on portfolio construction which is internationally accepted. I always think from the viewpoint of the client and what will make his life more easy and great . His interest should come before mine and bank and I say this because I think from long term point of view.

Candidate 2 : I am a behavioural finance expert and with use of words I can create situations of guilt , excitement and trust . I can make sure that the clients common sense and logical reasoning will just go for a toss and I also know how to do this all without appearing too pushy and deceptive . I have completed PHD in powerpoint and excel and can use those tools at 3:00 am in the morning too to impress a client.

You know who gets hired ! 

Why did you hire me ? – Asked Candidate 2

“So that we can learn somethings from you , anyways they never tought us anything useful in our MBA”  – Says Interviewers

“And Why did you reject me ” –  Asked Candidate 1

‘Because you took the title we were offering you very seriously” – Said interviewers

Any comments or experiences?

Do you think this topic of “relationship managers” deserves a Satyamev jayate episode ! . I can see some crying face’s already here, not on the show. Did this article help you understand exactly what relationship manager do?

167 replies on this article “Relationship Manager – Who are they and what they do ?”

  1. Sona says:

    Hi all,

    Can anybody please tell me , is AVP and Senior Relationship manager designation is same in a bank or not.

    Please explain. It’s highly urgent.
    Thanks in Advance

  2. Ashish says:

    I am into this for years now and let me tell you the salary hikes which a relationship manager gets is far better than any other banking role. If you have a liking to step out of your comfort level, go out and meet people and develop long term healthy relationship then this job is for you. Considering the pressure, if one really knows how to sell and how to play with peoples mindset then he/she can be pretty successful in this role. I multiplied my own salary in this role 2x within 6 month, that is the kind of money which this role offers. Besides this you get incentives on achieving you targets.

    1. Glad to know that Ashish ..

    2. Trupti says:

      This job is just abt maintaining the relationships or nothing else ! @manish Chauhan

  3. Yogeshwar says:

    I see where you guys are coming from…..bad senior management…..sales pressure….morning huddles…evenng MIS…..skipping boss`s calls……Relationship Management in Banking is out n out sales job……there are lot of good Relationship managers out there……the only difference is…..these guys are passionate about what they do…..they have the hunger to succeed and they are disciplined……They make plans for the day and go by the plan…….so before we say that RM`s job is a bad job….just ask yourself… you really have the passion to be an RM……if answer is no……better look for a job which requre lesser expertise.

    1. Thanks for your comment Yogeshwar

  4. Rajani says:

    This is one of the worst job in the market. It gives you money but at the cost of learning, peace, job satisfaction. I have been in to this since many years and struggling to move out. The problem is with the mindset of top management who completely lack compassionate leadership, thoughtful strategy, people skills. Senior management in these jobs are known to have worst people skills. It is all because the concept of relationship management is not that old in India and people have been accustomed to ad-hoc way of selling which is completely redudant and useless these days. Those who are your managers have got promoted in the past because they were fortunate to have phase wherein the customers weren’t that financially literate. Trust me if you happen to jump in to this by accident or by purpose then make sure that you find some way out of this. If you work diligently and honestly you will never be rewarded. Less talented people will get promoted because they have the guts to deceive and misell and good people who do clean work will not go that far so you will find yourself changing jobs too often because you are never settled. Good relationship management is very rare

    1. Thanks for your comment Rajani

    2. Krishnan says:

      oh lord true rajani.. am going for a walk in …tell me what to do and how and i dont like to deceive people and sell false things/Policies/insurance/etc and what not!


  5. RAVI says:

    Exaggerated..Dont blame the role.Blame d people who cheated.Iam from IIM.Iam not a RM.

    1. Salil says:

      TOP BSCHOOL GUYS WILL BE RECRUITED AS HNI MANAGERS and later will be promoted to higher roles..these website guys have no other work to defame the othrer role for their own business

  6. Alan says:

    I’m currently working as a recruiter, hiring for BPOs and I happened to come across this ad on Quikr about an urgent opening for relationship managers at a financial company the name of which wasn’t mentioned in said ad. Not knowing what relationship management actually involves, I Googled it and ended up here. And if this article is anything to go by, being a relationship manager at a bank/financial enterprise is no different from being a recruiter. You have to sell stuff to people, and you have targets and in a desperate attempt to meet your targets, you may have to deceive your customers from time to time. It’s make or break.

    1. Hi Alan

      Thanks for your sharing your valuable comment on this topic. Please keep sharing your views in future also


  7. prashant says:

    what is different between sales officer and Relationship manager at bank if there is different than tell me how i get job of RM and what educational qualifications i need to get job of RM at bank and i have two year experience in Sales

    1. You can surely get a job as RM if you can crack the interview 🙂 .. No special thing required for that !

  8. GARGI GHOSH says:


    1. Gargi

      Dont panic .. A job is always good, if you do it right way .. Life is long and this is a small thing in life at the moment.

  9. Good One!
    Thank God! None of my bank clients are here…
    I worked as a relationship manager for six years, in six years time- i worked with India’s three largest private banks… Though my performance in the last organisation was 42% of the total achievement of the Branch’s revenue achievement by selling only mutual funds, private equity, General insurance and very few lakhs of ULIPs, my Branch Head was not giving me confirmation, as i am not selling LIFE insurance – He missed his Bangkok trip 😛
    Ultimately, i had to take up the decision to serve my clients who provides me bread, butter and pizzas and ice creams too; by leaving the job ans started my own financial planning company… Left the job and into this asset management business last 2 years 8 months… Happily serving clients, God is providing me for my heart…
    Please don’t blame RMs anymore… 90% of them are doing it for their survival…. 10% are there… they deserve all the curses! 😀

    1. Haha good one Binson .. Glad to hear your story ! 🙂

    2. Yugal says:

      RM’s situation is pathetic in an organization. They have more 25-30 products to sell and in 25 products also there are some variants means more than 150 products. Except that they some targets which is called revenue generation. They have do or die situation and that’s why some RM’s do misselling which is wrong.

  10. Murali Gollapudi says:

    very useful information and post. Its very much helpful for me and didn’t become a victim of RM’s

    I would like to share my experience.

    I have been trying to change my Phone number and address from long time. I have visited HDFC bank many times for this reason and it’s not done. HDFC Executives are very very responsive and they don’t care about the customer. They care about only their targets and business SLA’s. I did some FD in that bank for some short time by using Online banking.

    This information came to RM and he called me one nice day. He told me that i’m a classic customer (surprised I’m not aware this :)) and you are been assigned a Relation ship Manager who can take of your bank transactions. He check with me ” How is the service and other things with HDFC?”

    I explained my issues and he came to my office with a person for providing the resolution. That person is a financial advisor fromHDFC LIFE Insurance products.
    At the first word, i told him. I don’t like HDFC Services so that’s why i don’t use HDFC bank for any transactions. Financial Advisor asked me about the issues want to give resolution.
    He bring the application form to change Mobile & Address and gave me a bonus upgrading my debit card with zero annual fees. Asked me to go for Credit card also. I told I’m having the CC from last few years which is also a waste Card with out any benefits 🙂

    He is telling me that FD is not good and would like to suggest a best option with life coverage. Frankly i was not aware of those products. He told its easy to get 16 – 17 % of return with medium risk and around 30% of returns with high risk. All these come along with 10X life coverage.

    After i did some research and come to know few things. But i would like to know the review and experience from JI. Posted a thread here.

    Interesting thing is there forget about my issues to provide resolution(which is a primary responsbility of RM ). Followed up with calls about the Product purchase.
    Asked them to first provide resolution and call. Its has taken 1 month to provide the resolution and then he called me.

    Finally I told to RM. I’m not interested regarding this by knowing all the facts.

    Thanks guys for the valuable post and helping me 🙂

    1. Extremlly good Murali

      You have behaved as a informed cusotmer and thats the reason your financial life will be much simple and good for this single reason . Well done and thanks for taking patience of sharing your experince !

    2. Madhavi says:

      Absolutely agree.. HDFC has a paaaaathetic service.. the no of ‘a’ s i mentioned directly proportional to their “valuable” service. We have a relationship manager for our company who will always “get back” on whatever we ask information or service on.. but NEVER got back till now on a single thing. Even escalation to his manager doesnt help…guess they all are a bunch of incapable unprofessional staff.

      They will be on your head the moment you are ready to invest something but dont ask for good service. I had high opinion on HDFC till recently but its as WORSE as any other.

  11. Chakravarthy says:

    Hi all,

    If its only with insurance that you’ve a problem, let me share something. I work for a private bank, and never mis-sold a product and to top it all never sold any insurance other than term insurance despite the mounting pressure (can you imagine that??). I help my clients’ accumulate their wealth only after understanding their risk appetite and time horizon. I feel proud that none of my client would be thinking of me in such a poor light.

    It is a sad state and sometimes I wonder why IRDA doesn’t do a reality check and throw some light as to why insurance should be bought, not sold.

    1. Thats great to hear Chakravarthy ! ,. but you are more of an advisor , we are talking the post “Relationship Managers” who work in companies showing to clients as if they are for them !

  12. Swetank Saroj says:

    Hi Manish,

    I nice article to empower the people to know and tackle their RM’s.

    I personally never face the problem of a RM, but still I would say that this problem arise coz of the system and in reality the system is corrupt.

    I distant relative of mine (also a very close friend) working with a leading Indian bank once gave me a call and start telling me my credit card details. I inquired how come you know each and every details, to which he said they have access and can get the access based on requirements. Explained and requested me to buy a policy on card and then get it cancelled withing 3-4 days. Later I asked why he did that, he said they were forced coz bank want more business and not just selling CC or normal accounts. I said the product is bad and he also confirmed that and said when they complain they were asked to keep quite and and sell.

    So the problem is not these RM (of course they are the face) but the entire system and when the system do not want something better for the consumer or customer how can these RM be good..even they act like evil.

    If I see this philosophy in a broader sense every one of us are equally responsible for this system, coz of our desire of more wealth and much better return.


    1. hmm.. thats one way of looking at it 🙂 .

      THanks for sharing your relative case and the overall incident. It should how deep rooted the issue is!

  13. Potluckster says:

    I had an account with KM Bank. My RM told me to open an Demat account with them. Obviously he didnt told me various hidden charges and the money started deducted from my account. Immediately I withdrew all my money and never used that account again. I am more comfortable with Public sector banks

    1. I dont think there is any thing different in PSU Bank here ,all banks charge for demat accounts

      1. Potluckster says:

        They charge but they dont hide. The KM guy obviously hid other charges which was wrong

  14. vijay kamble says:

    Is a relationship manager equivalent to a Financial Planner. If not, can you suggest a good financial planner. I am suffering from Chronic kidney disease – creatinine level of 5.5 average. Currently I am fit and fine. But can’t say the same in future. Can i get a term plan of 1 crore from any insurance company.

    1. Financial PLanner is different , RM are mostly people who assist you anytime from Bank . You will face issues getting a term plan. Better opt for one or two companies and see what happens

  15. sarath says:

    Just wanted to share a small incident which happened with me recently when I waked into a bank to submit KYC documents. I could see MIHY person being extra couteous to me and I could sense a sale pitch coming to me.

    As suspected he came with “an excellent” investment plan that will make me rich if I invest 1lak for just 7 years and stay there for 15 years and with free insurance. I asked him if he is trying to sell me a ULIP, he said couteously it is free insurance no charges.

    He gave me an illustration on how much I will get after 15 years along with split of “guaranteed” adition year on year. I closely looked at guranteed addition amounts to 95k per every 1lak invested. I asked where they invest to get 95% return, he said govt bonds. When I probed names of govt bonds which give more than 10% return he went to seek help from his colleague. His colleague came in and suggested that over all after 15 years guaranteed 15% return plus insurance and he went on to claim that money is not invested bonds but it would be given as loans to bank customers.

    By then I understood that they are either not sure of the product at all or they are trying to missell. I asked both of them to prove that end number they have shown as indicative return is better than what PPF gives then I will buy the product. They confidently said yes but when I have shown then what PPF offers is more than what they have claimed as 15% retrun they were struggling for words.

    1. Haha .. nice 🙂

      thats what happens when one does his homework well 🙂

    2. Chakravarthy says:

      Let me guess, Are you referring to ICICI Bank and GSIP (Guaranteed Savings Insurance Plan)??

  16. Narendra Deo says:

    The truth has been explained on practical lines.I am suffering & facing a heavy damage by purchasing ULIP of Metlife insurance.The details of happenings will be eloberated in due course of time.

    1. Sure .. please let us know the case of yours

  17. Varun Krishna says:

    I first of all wanna thank you for the wonderful articles that you are sharing on this website ,its really worth reading them.Well this article about Relationship Managers I would say a 50-50 for the fact that whatt you have mentioned here is true that the RMs here who work for the Banking firms are just product sellers.Now this is more or less like a doctor who is forced to sell medicines if that is all that he can make money out of then there is nothing to be surprised that he is pushing everything that he has to his clients but a good doctor would obviously see the issue and prescribe.For people who are not well educated on personal finance will obviously make mistakes that most of us have done in our past.So RMs are mediums used to rectify this if they understand this and work towards it there is a lot of good things that can happen to a person .So a bad prescription makes a bad doctor and the right makes a good.

    So it all depends on the ethics that is followed than just try and sell products that will leave that kind of an impression that you mentioned in this article…


    1. Yes Varun

      The point I wanted to make is how things are working in finance world these days and they should not get an impression that RM is for his benefit totally .

  18. Tarun says:

    A must read article on how HSBC relationship managers looted singer Suchitra Krishnamoorthi.

    1. Thanks for the link Tarun . I was aware of this link and the issue . It will help others

  19. Krish says:

    I am an imperia customer of HDFC bank and is provided with dedicated RM. After my account upgradation from preferred to imperia, a new RM with special training and more experience with banking are provided.This is what bank informed me when I enquired about the need for RM change.

    I am in senior position with all resources in hand in my company. As usual our first solicitation call started with trying to offload some thing on me. Couple of probing questions in technical terms and overall financial knowledge from my side, they quickly realise the customer level and never bothered me. Certainly these RMs are not equipped to deal with the senior level corporate executives and that is the good news.

    Did I find the use of RM.The answer is unequivocal ‘Yes’. All my service requests are taken care with prompt action. My RM never dare to call me and it is other way that ‘hunter gets hunted’. I give lot of work to my RM to never think about selling anything to me.

    1. Haha .. thats a great comment on how RM can be used to do your petty banking works . Would like to know what kind of tasks you give RM;s ? I never knew what all they are suppose to do for HNI’s (assuming you to be HNI) ?

  20. Praveen says:

    When my RM calls, he want me to open a new Saving acccount in name of my family member… then at times he want me to buy some ULIP plans..

    1. If only he asked what we want, we would have more respect for him !

  21. Mansoor says:

    Nice article Manish. I rejected my RM from ICICI on the grounds that the person is not knowledgeable after interviewing him.
    To my surprise, few months back an agent called me to enquire about my experience of visiting one of their branches, she also offered me to buy a term insurance. I told her that if you are doing the same job with all your customers, you must be really proud.

    1. Thanks for sharing your experience with ICICI RM 🙂

  22. dr kishan says:

    Dear Manish,
    What I concluded after my and others’ experiences is that thieves dont come in the dark always. They are not always dressed in masks and armed with lock breakers etc. We can encounter thieves even in broad daylight dressed in finest of clothes with most charming smiles on their faces, so much so that even most intelligent people can fall prey to them.

    We all lock our houses when we go out daily, because we dont know when the thieves may come. We all lock our cars when we park them, so as to protect from theft. These “locks” can be bought in the market for some price and applied on the doors.

    But there are some other “locks” which can only be acquired by getting knowledge. This cannot be bought from market for some money. And getting this lock is a life long process which entails a lot of effort. This “LOCK” is required for protecting our hard earned money. Or else the charming and well dressed “thieves” shall rob us in broad daylight. This is KALYUG. And thus everyone will rob us if we are not cautious. We can very well say we were ignorant but it is our fault. Not locking a house and expecting there shall be no thieves is not the order of the day in today’s world.

    Why dont we educate ourselves against this robbery
    Reasons are many- lack of time, lack of access to knowledge, lack of knack of understanding the concepts of money, lack of interest etc.
    But I think spending some time and taking some effort to save our hard earned money is really required or else money will just slip like sand slips out of our hand.

    What I feel strongly:
    There is no mis-selling, there is only MIS-BUYING. After all its ME who had put the signature on the application form I can blame nobody absolutely nobody for that signature.

    Sorry if I sounded too harsh
    dr kishan

    1. Very beautiful explaintation and thoughts on misbuying 🙂 .. excellent .. I would use your comments in one of the articles 🙂


      So true and deep.

  23. A V Gosavi says:

    Dear Manish,

    Your book “Relationship with Money” is wonderful. I would like you to send 20pages free of this book to my daughter Dr Aditi Waikar on so that she would purchase it. I have already recommended the book.
    Thanking you.

    Anand Gosavi.

  24. saket says:

    Here is how I deal with RMs.

    RM-‘There is one very good plan for your sir’
    Me-”I have a balanced portfolio and do not wish to change it at the moment”. Thanks!

    RM- Can I meet you personally to explain about …so and so…investment plan?
    Me- That won’t be required. I can check the details on your bank’s website.

    RM- Then shall I give you a call to you tomorrow?
    Me- That will not be needed. If I find it interesting, I will call you myself. If I don’t call, assume that I am not interested.

    RM- Sir you can invest your RD maturity proceeds in so and single premium plan…
    Me-No thanks. I have different plans for that.
    RM- What are you planning sir?
    Me- That’s a personal information I would not like to disclose.

    99% of the time, the conversation ends here. In 1% of the times when it didn’t, I had to throw my politeness to wind.

    1. Haha .. very nice .. this is what is needed . I dont if there is any option to opt out of RM , why to have any RM at all if you dont need it !

  25. Rahul says:

    thanks again manish for your good articles…

  26. Rahul says:

    hi manish, its a very good article. I am having a/c with icici. now-a-days, whenever I visit a icici branch, whoever(bank cashier, manager, any employee) I spoke to asks me are you interested in any Investment plans, even banking person also asks me same question. this bank have started special privilege banking services which is good but again why cant you invest here sir.
    I requested them locker and Thu told. me to Invest in ulip for 1 lakh. if you are a JI reader, you will utilise these bank people in a very good way. tell them the word bank ombudsman, they will fall In line. I started using sbi savings plus a/c which is a very good option. whenever money in a/c is more than 5k, it creates a fd which gives more than 8.5% returns

    1. Nice .,.. so finally did you get a locker or not ?

      1. Rahul says:

        I didn’t locker from icici bank. they told me to write a letter and told me I am in waiting list. I got locker from state bank of travancore. recently they opened a new branch and gave me locker for opening a new account. its a better deal because icici asks me nealy 4k for small locker whereas state bank asked me only 1.5k. Except for these unnecessary pestering of investments, I prefer icici bank.

  27. george joseph says:

    Even in nationalised banks(SBI Cochin) i was being offered a guaranteed nav plan by a lady saying its a very good plan.
    I had a half mind to take it on, then i told her let me check it out on the internet and get back to you.
    The timing of the article of gauranteed nav on JI was perfect, i think i am rich by that article 🙂

    1. Nice to hear that one article saved you so much of money !

  28. Sekhar says:

    Hi Manish,

    If you write an article on ” How to escape from insurance Agents, Relationship Managers, manager relatives, friends of friends, our relatives …. Etc “. That would be helpful to all.


    1. Do you really need an article for that , What would you expect in the article . The answer to this is as simple as “Just say no to them if you dont feel any need of them”

      1. Sekhar says:

        Hi Manish,

        I did the same thing with my friend cum LIC Agent. I told him i was planing to buy a new home.


  29. Bhaskar says:

    “Will you ask your barber whether you need a haircut ?? ”

    These guys are glorified salesman and should be avoided completely. I have signed up for the do not call feature from HDFC Bank so they never bother me. In this age of internet banking, whats the extra benefit which RMs provide.

    Why does’nt RBI ban this practice of these guys seeing through our account transaction details. These details are private since they contain the location, store details and timings etc. It can be a big issue if they are using the data to profile the customers. I don’t know whether its legal for these guys to be going through our personal bank transactions. Anyone have any thoughts on this?

    Manish – Thanks for a wonderful article, as always.

    1. Bhaskar

      I think Relationship managers are a term generally used even in International banking and has its own place in banking terminologies . there can be genuine Relationship managers and might be useful to some . So all banks can do is give you an option to have them or not have them . After all you need to decide if you want to follow and advice by your relationship manager or not .

  30. R Kathju says:


    1. Sohil says:

      Please avoid caps…its hurts …i left reading your post halfway…..its irritable to even read.

    2. Thanks for sharing your experience with us on this forum

  31. My relationship manager wants me to open an account. When I reminded her I already have one, she said how about your wife / kid? lol, lady we are talking about opening a bank account!! I tried to be as polite a spossible to turn down her request.

    Infact I am so pissed off by their services I am planning to close the one I have.

    1. Hmm .. better just tell them they should never call you back .

  32. Vaibhav says:

    Dear Manish,

    It is a buyer beware market. And most importantly the person who is sitting on such a pile of cash is an intelligent one.
    And, if, he still makes a wrong call on taking these policies than he is not capable enough to have suck kind of cash.

    1. Yea agree that its a buyer beware kind of market , but what you said that “the person sitting on pile of cash is intellegent” is not true 🙂 . Why do you feel so ?

      1. Vaibhav says:

        To earn and save money one must be intelligent. And the person should and is always carefull with his hard earned money.

        1. Yes , he may be intellegent , but he might not be wise and careful enough to save his money from disappearing 🙂

  33. Ravinder Singh Chawla says:

    Nice article, Manish and JI Team! Keep it up! The fact of the matter is that most of the ‘investors’ prefer to allow themselves to become gullible and allow themselves to be taken for a ride. As read about in the infamous case of a CITIBANK branch in Gurgoan, where the concerned Relationship Manager was able to befool even the CFO of a reputed big corporate house and many other ultra HNIs too!
    Afterall, it is our money and it is our responsibility to do our homework. Every industry and institution does have black sheeps in their herds. As already pointed out by you and many other fellow readers of JI, with little bit of awareness and financial literacy, every investor can take informed decisions. Today, is the age of information glut when everything is available online.
    As they say “this too shall pass” and the financial literacy being spread by blogs like JI would certainly facilitate in investors taking informed decisions.

    1. Thanks Ravinder 🙂 .. Good to see your thoughts on this issue

  34. upendra says:

    Dear Friends,

    Bank accounts ke privecy ki aisi ke taisi kar di in logon ne. are we giving them rights to know abt our ledgers to check our details. its a white caller bank roberry yaar. just tell me how to make voice on this issue. yes i faced the same prob. my father made fd and at maturity time these so called RM came to home for investing in Ulip policy. i resist my father and some how its stopped. Its not RMs fault only. Its a banks strategy where we should have to hit the sword now.


  35. Sachin says:


    These RMs / executives have their priorities defined. Last month I went to HDFC bank to start SIP in mutual funds. The executive helped me to do that. However, he did his best to sell me three things 1. HDFC CREST ULIP 2. Credit card (I don’t have one yet) 3. Saving accounts for my kids.
    When he found out that I am not interested in any of these things, he lost is interest. Now he is not picking up my calls!

    1. Sachin

      Obviously .. you are a dead body to him , why will he bother to even contact you now !


    hi manish,nice article.the fault is not with the RMs,it is there job to sell.why people get trapped to this ,it is their fault.we have tendency to blame others without acknowledging our fault. it is very easy to say “not interested now,hopefully will see in future”,why we don’t say this i can’t understand.we Indians have tendency to become very friendly with anyone who at any point of time show sympathy with our financials or with our family matters,it is here the RMs throw their dice to sell their education is very necessary to not get trapped to these RMs.

    1. Thanks for sharing your views on this topic

  37. Sohil says:

    MY hdfc bank branch account is almost as old as this branch when hardly 3-5 souls used to come to bank every couple of hours.Today scenario anytime more than 20 customers exist at any point of time.

    Now coming to RM;i have seen total 4 of them or what i can recall.
    The first RM was a gujju lady who used to handle all the job from cashier to loan,to pass book to much more.SHe did sold me 3 products in the year 2006.

    But either co-incident or luck i never made a loss in it.My ULIP policy where i invested 70k so far till 2012 start was liquidated by me with 1 lakh amount.Other 2 were mutual funds where already one is trading at double to amount of amount invested and 2nd not good performance but atleast 5% return annually.She left and we never came to know where she left.

    2nd Rm though he used to talk to me to invest in policies he knew much well he cant force me hence i used to use his service to get things done cheaply or freely like dd making,free life time debit cards etc.he later changed his branch.
    3rd one was a funny character as he always used to be sticking to his computer and doing something and manager blasting in open abey kuch kaam kar clients la..He also left,after that for next almost 8-10 months just pesky calls to get credit card used to come.Now a new chap has been enrolled and he is after me saying i want to meet you in person at your office place.I made a visit to him in branch where again he was at his best suggesting some uber cool products and all and suggesting he was handling a rival bank foreign clients portfolio and he knows much more than any soul in this branch.He was after some policies and trying to suggest it to be debt product.I cut short his crap saying i am doing CA course .So i know much well how to handle my money.He also understood his bit and we mutually separated our way(lolz).This was 3 months back.
    Few days back he again calls and talk to me he is speaking for the first time.Again same thing i want to meet in person at your business place where ill help you to learn how to do business and get money from bank(in past 15 years in banking not a single member of my family ever own a Credit card,took any loan,over draft from banks) and he wanted me to teach where i can get money from bank.
    Again i said ill meet you in bank and cut his crap

    1. Hi Sohil

      Thanks for sharing your views on this topic

  38. Raghavendra Shenoy says:

    Excellent post! Fully agree with the article. I have an a/c with HDFC Bank and keep getting calls for insurance plans/cards etc. These folks are sometimes so dumb – they don’t even know that a person who already has a credit card with HDFC Bank cannot b offered a second one.
    There is no special care from RM’s..they’re here to rip you off coz they are under extreme pressure.
    I hold an account with Pashan, Pune branch of HDFC Bank and had been there to request for a locker facility. The officer ( yes, not RM) pushed a ULIP form across and told me in hushed tones ..” aap ye policy le lijiye, aapka locker wala jugaad ho jayega”. This is the “new” definition of customer service, friends!

    Now looking at a better bank to shift my accounts. No to HDFC Bank.

    1. A lot of cases are being reported from HDFC bank .. not sure why this is so .. thanks for posting your experience 🙂

  39. Saket says:

    Great choice of a topic Manish! As always.

    Whenever I get to hear the sweet voice of my RM over phone , I listen to her with fully but always end the conersation with a polite NO, murmuring ‘Hey, I love your voice and the way you speak , but I love my money more than that.’

    1. Haha , i like that kind of comment !

  40. Sunil hemnani says:

    I think the basic theme of the RM is his job .He stays as long as he performs so ,he wants your money thats it .Lets ot misunderstand the “relationship ” term here .He will cheat you in so many ways that cant be mentioned .Now its our job to ensure our “relation ” with our money stays good .So we should be quick to inform the manager and subsequent authorities whats happening as soon as possible. I guess people when they lose money feel desperate and instead of taking action before the “con job ” want to do somthing to recover the money ,thats when these “RM” are so dangerous .So beware !!

    1. Yea agree with you here Sunil 🙂 .. thanks for posting your views on this topic !

  41. Dr M Chandrashekhar says:

    Most of the RMs are clueless — they commit mistakes while filling up the forms, give biased advice ( I never asked for it !)– I have neither spoken or met my RM in ICICI Direct– suddenly one day I saw his name in my profile. He has not even bothered to return my call.

    Forget about RM, even the Branch Manager misleads you– he has an eye on your Savings Account balance & tries to rope a product not suitable to you. Recently, I was roped in one such deal & I realised later that at my age I should not have invested in that product. I walked across to her one day & told her she gave me wrong advice. The damage has been done to me anyway.

    1. Hhmm.. yea .. All the officials are on the mission of wasting your money for their own benefit 🙂 .. Thanks for putting your views and experience on this topic !

  42. Madhurie says:

    We are basically very trusting and believe that the other person really wants to do good to us. And end up not doing our homework and leave everything from choosing the products for investment to filling up the forms to our RMs.
    And its after a few years we realize our folly when its too late and no one to blame!
    I too have learnt how I was taken for ride by my very close friend who happened to be my RM! So when it comes to money matters, spouse and kids trust no one! Each one is really hard earned and needs the same respect at all time.

    1. Yea .. Dont trust anyone .. the worst part is what a RM is a close friend , he/she can always say , it all depends on how product performs and he/she has nothign to do with it

  43. Manidipa Bhaumik says:

    Completely true. Its really tough to perform on those positions.

    Very well written.

    1. I didnt understand what you mean by “really tough to perform on those positions.”

  44. Vivek, Hyderabad says:

    Thats why I steer clear from Private Banks. PSU Banks are a Boon and I will only use the services of PSU Bank in my lifetime. I had to close my SB A/c with ICICI and HDFC Bank, because their RM had been trying to push various Financial and Insurance products aggressively. I scolded the ICICI person and close the a/c with them. In case of HDFC, I had a good rapport with the RM. So, after lot of requests, I gave up and bought a small-ticket ULIP policy with an annual premium of 15000/-. The same RM was trying to push more products, so I got angry, but I politely refused. Since that day, the rapport with the RM has turned bad. I finally closed the a/c. I am so happy banking with PSU Banks.

    1. Good to hear your experiences .. that confirms how pushy and aggressive are these private banks !

  45. A V Gosavi says:

    I fully subscribe your views on Relationship Managers. In a market driven society and businesses, to be good lier is a marketing skill! Unfortunately, this is so because we as a nation and with all those politicians who are supposed to manage the welfare of nation, have dismayed, not only public in general but the younger generations also. The HIGs (Hign Income Group) in younger generation of today is easily carried away by this and that because our New Education system has made them so. The human values, respect for the values and waging struggle for the values is devoid of today’s education system. We are producing highly educated class or low educated classes with no respect for humanity. We have become victim of money monger system, value everything in terms of money and money only.
    In view of this, your blog / site is really doing humanitarian job and therefore I have great respects for you and your Team.

    Anand Gosavi.

    1. Madhurie says:

      very well said n couldn’t agree more.

    2. Thanks for sharing your experience on this matter 🙂

  46. Vivek says:

    Hello Manish,

    Nice Article…Liked it. But that is the fact. There is competition everywhere.
    So is the case with so called “Relationship Managers”.
    Cannot completely blame. Just listen to them, smile and reject the offer.

    But I am happy that I am teaching some of my colleagues from making these mistakes and responding to these people.


    1. Good to know that you are helping other people also .. one can just reject their offer , but they should be aware about misselling part !

  47. JP says:

    Very True!
    if somebody has money and no knowledge to protect it.. these are these CHORS IN NEW DRESS will steal it away.

    1. yea thats one way you can address them 🙂

  48. Siddhant says:

    This is a very serious issue I have also been on the victim in such cases, but on probing the matter further I came to know about the other side? do you know that the most of RM’s performance reviews are done based on Other item sales rather than the Customer complaints, I know from a friend of mine that the bank managements Have very strict targets for Sale of GOLD, Insurance (ULIP) given to the Branches which then gets pushed on to the customer. this makes even the good RMs to do wrong things. This is reality of the banking business today & HDFC I think is the worst in this aspect today.

    1. Yes thats the other side, but then thats another issue altogether , you can discount this issue based on RM issues !

      1. Siddhant says:

        Yep, that is true,

        What i have done to keep the RM off my back is keeping the minimum balance in the Savings Account Around Rs.10,000/-, Since I started doing that RM calls have become zero & life is happy…..

        1. Haha 🙂 .. nice one .. so do you transfer all your money to some other account ?

          1. Siddhant says:

            No sir, the first thing I do once I receive salary is to transfer it to Ultra Liquid Funds. & then take a decision about further investment this way I do not loose my money to inflation & I keep the RM off my back..

  49. Shib says:

    What is described in this article is absolutely true… whenever my RM sees a big amount in my account, he will give a call and try to sell some of their products, mostly ULIPs. As already said, in the first example, my HDFC RM also says that I’ll convert the premium to EMI at a nominal one time charge of Rs 200. To teach him a lesson, I took a HDFC SL Crest plan and cancelled within the free-look period. Now when he calls, he doesn’t sell me anything. If he tries to, I have a long list of bad feedback for HDFC (including the painful procedure to cancell in free-look) to which he says he’ll pass on the feedback to the officials.

    1. This proves that they have access to your data . He can clearly see whats going on and he can play with what you are thinking .


      1. Shib says:

        “they have access to your data” … absolutely no doubt on this. They call on the pretext of confirming large value transactions, they ask in a friendly manner what/why u did the transaction for. For e.g. I did the down-payment for my flat, my RM saw the transaction paid to a builder, started inquiring and offered me to help with home loan. I slapped back saying I already have a pre-approved loan from a public sector company, and even if i hadn’t I’d not have taken from HDFC Ltd.
        The RM also calls asking to open accounts for wife and kids, maybe they benefit because of the minimum amount to be kept in those accounts.

  50. Raja says:

    Hmm.. something wrong with the HDFC Bank in recent time…or may be it’s just that they have got my mail id only recently. Too many mails from them them promising personal loans, cards etc…

    A year back i had been to one of their newly opened branch in my neighborhood to open an account. They couldn’t process my request because of the crowd and just took my details in a register and promised to get back to me.
    Guess what ? After 3-4 month’s i got a credit card. Actually a mail saying your credit card has been dispatched. Never know what happened to that card though.. hopefully returned 🙂


    1. Thats scary ! .. why dont you check your cibil report to see if that card is mentioned somewhere or not !

  51. Vivek Rawat says:

    HI Manish

    Nice article. Everyone of us is aware of the existence of these relationship managers and how they lure you into a honey trap.

    I would like to share an incident here, which is just 2 days back. I received a call from a friend who told me that his Bank which is HDFC BANK, call him and advised him that they can use his full credit card limit which is 1 lakh Rs to invest in a fund, and he can pay back through EMI and that too without any interest.

    Frankly, they use interesting techniques/offers to lure the customer. Only way to avoid getting in these traps is BE INFORMED And Up Dated yourself.


    1. Yea .. Cant believe HDFC bank is doing so much of pushing these days .. everywhere I hear HDFC HDFC HDFC 🙂

  52. Damodaran P N says:

    RMs, popularly known in Banks and financilal institutions. Please do not deal with them as they are mostly new recruits – not even knowing 5% of the business !!! They change their job the moment they get a better chance and the investor’s position – one can imagine. If at all, one need to INVEST, ask them to come along with their Branch Managers or higher up, who are in the company’s pay roll for discussions and further investment please.

    1. Hmm.. yea this is very true as I mentioned in the article too .. they just are not around when you need them

  53. Dominic says:

    Again like many folks, I have also made few wrong investments few years back due to so called RMs. But in the last 3 years I enjoy pulling them to the end (kind of cruel). I start with “WOW fantastic product, and I am actually searching such one”. I listen to them for minimum 3 meetings. Finally I have proved them they are suggesting a stupid product and returns can’t be that much. Thanks to JI’s IRR calculation Excel file. I have made them to say “suggest my name your friends”. But they are aware that I’ll not do that. Anyway they generally don’t call me after that last meeting 🙂

    1. Naveen says:

      To avoid, I just tell them that I am leaving for US today evening :p

      1. Haha .. very nice .. tell them you are leaving India , they should never call again !

      2. Sohil says:

        New funda here is they have started forcing currency derivative or try to forward money exchange stuff once you say you make foreign trips.So beware.

    2. Haha .. thats great 🙂 .. Really good to hear you are using our IRR calcualtors and tackling these situation !

    3. koguty says:

      This is awesome – I will use this 3 meeting trick also :P.

      As of now, I just tell them to show that their product is better than PPF [or for that matter tax efficient bonds like NHAI] – if it is better than PPF, I will buy it. It is fun to watch them fool around with numbers, they dont have any clue whatsoever about compounding, taxation etc. This way the meetings are short and you end up without parting your money.

      Another way to tackle these RMs – ask them if they have taken the same product, if not then why. If they have taken, tell them to show proof. Whatever they say, doubt it.

      1. Haha .. good one .. so the whole idea to get into a situation which is tough for them to prove

  54. Sunil says:

    AiActually it is Bank Policy fault not RM

    /SRM always faces position like “SNDVCH” for his own ” BREAD-BUTTER ”

    1. Sunil

      We all know that Sunil 🙂 .. We are just comminicating what happens !

  55. Sudarshan says:

    The relationship manager at ICICI sold me this policy called ICIC Life Pru Wealth Stage II plan… I never knew what that plan was about and I was so ignorant at that time 🙁 (before knowing about jagoinvestor and I was poor with investments… I was 22 and could not make any proper decisions regarding investments)… I am paying the price for that mistake and paying Rs.25,000 yearly… One good thing is it atleast comes under 80-C and I took some time to find about the policy… It guarantees my investment atleast and from that time I have decided to spend time and make proper decisions in terms of investments..

    If you have some idle money then my best bet is use it for the Swap in Swap out scheme that most bank offers (under your savings account)… In that way RM won’t disturb you!! This is from my experience

    1. Thanks for sharing your case

    2. Sohil says:

      You using it for 80c deduction ?If so worst part is once you liquidate or on maturity the investment you’ll get in hand is taxable.SO dont be under impression getting deduction from such policy is a good thing.

  56. sinduja says:

    why blame the messenger or defame the job profile. Theoretically a RM is suppose to be financial adviser for the client. but in reality he is just an representative of the bank or financial institute, who is asked (read told) to generate revenue from a set customers who are handed over to him or her as “portfolio”. All financial institutes want to maximize their revenue and hence the push at gun point for Insurance selling.

    RM is an interface with very little power of representating the client. Can a RM survive by not selling high revenue churning ulips or can he recommend an insurance plan of a company their bank does not have a tie-up with ?? what is to be sold is downloaded – It is not a discovery process, sales pitch or scheme for the month is handed over and the RM is just doing his job in a highly competitive industry .

    If miss selling, overselling is prevalent there is no point blaming the sales agents they are just the last link… The existing scenario is potpourri of low regulations, lack of reforms , lack of knowledge with customers and sales agent ….
    unless there is a change in these ares there can be no change with sales agents and there is no point blaming them either.

    let the buyer beware or insurance is a subject matter of solicitation are serious terms that any customer should be aware before crying foul play….

    1. Sachin says:

      Yes Mr Sinduja you are definately of the Breed called RM

      1. sinduja says:

        Sachin : I am not a RM / Agent or any person related to selling any type of financial product. I just don’t believe in blaming only the RM or agent , because they are easy or approachable.

        PS: I have also been sold financial products like credit cards with false promise etc etc. but end of the day I bought them right !!!

    2. Sinduja

      Obviously Buyers have to be beware , but at the same time there has to be responsible SELLING also 🙂

  57. Sachin says:

    I totally agree with the article. I once went to icicidirect for submitting documents for my KYC. There the senior RM saw me and started to coax me. Slowly he started with such innocence and as if he was my biggest well wisher. On his request i opened the my icici direct account in front of him as he said some imp changes are to be made. Then he immediately changed the RM code in customer relation tab. Then without my consent was going to enable the trade racer subscription. Then he further lured me that i can give him my password and log in id and every month he will earn 3000-4000 through share trading. To this time my disgust was building up but still i was patient.

    Then he lured me abt something called GSIP. Guranteed SIP he said. Lock money for 12 years at assured 12% return. He quickly showed me some excel calculations and tried to further lure me by saying that only next week icici training seminar for share trading will be conducted there some xyz expert will be coming and he will arrange a personal sitting with him for designing my portfolio.

    I had been reading JI for quite some time before i had went there. My purpose was to start SIP in selected mutual funds.

    He went to the extent that to lie that this was a scheme by Govt of India and it is already over subscribed and if i DONT take it right now it may be closed by today evening.

    By this time my disgust was at its brim and i just blasted out on that bastard and came out of the office. They are so cheap and so mean that ..BAS BAKRA HAATH LAGE TO KAAT DALO.

    ppl beware of this breed called RM

    1. Sachin

      Thanks for sharing your case !

  58. Visa says:

    Hi Manish,

    The article is very good an eye opener to all.

    I completely agree with this. I am one among those who has been mislead by RM. I have with Kotak. They tried to sell ULIP . Got carried away and made a loss of 2 lac. Even the portfolio mangement is very poor. They change RMs very often giving some reasons or other. Recommendations given by one RM does not match with other RM.
    Finally we are the affected people 😉

    1. Thakns for sharing your experience !

  59. vijay garg says:

    very true….RMs are most dangerous person into bank..they are not sellers..they are mis-sellers of my good friend is very good HNI client of one private bank..i surprised to know that in last 5-6 years relationship with’s RM has sold 32 ULIP plans to him at different occassions with so called unique features…RM knows the account balance status of his accounts and every time whenever RM has some targets he made him “BAKRA” the time of renewal of premium RM always insist for new plan and ask for stop premium payment of previous plans….after going trough all the policy documentions we came to know that almost all the places RMs had done the fake signature of policyholder specially at benefit illustration column.. and i am sure that it is very common practice for RMs… most of the RMs even don’t know the basics of financial planning..they only know “client ko Policy kaisi Chipkani Hai” so my advice is always beware of your bank RM..

    1. Thanks for sharing your experience and what you feel about the topic !

      1. vijay garg says:

        dear manish..
        i am very happy that always you raise very useful topics..usually we face all these difficulties in our day to day life..but never bother to tell others..because of our ” Mujhe kya lena” attitude…

        1. Yea thats true ! ..

  60. I believe, more than the RM who has a “meet-this-target-or-lose-your-job” fear lurking on his back, the blame lies on the top – the guys who create the dud financial products not knowing what the market wants, and then push them to the customers via holding a gun to the RM’s head.

    I wrote about this very concept of financial advisors / relationship managers being portrayed Satyamev Jayate on my blog recently, but then, in this entire episode, the investor (the victim) is also the criminal…for not willing to do the homework before parting with his money to buy the products the RM is selling.

    As investors, we must find a way to move from the darkness of ignorance, hesitance, self-doubt, and unwillingness…to the light of having full control over our financial destinies…instead of laying the blame on the RM, who is just doing the job he has been asked to do by his bosses!

    1. Obviously it does lies in the whole system , however we are talking what happens in world and not who is responsible for it 🙂

  61. Dhaval Sanghavi says:

    Hi Manish,

    Totally Agreed. The worst thing is they keep changing frequently as you said. In few years of span, I have got 4 different RMs and also few doesn’t have basic knowledge of transactions and TDS details and etc… Every time when I ask something my RM, he tells me that I will get back to you…

    I can say that I have more knowledge than him.


    1. Haha .. I would agree that most of the JI readers have more knowledge than those RM !

    2. Anand says:

      First and foremost I didn’t even know that I had a RM, and till I got to know the concept of RM, I was already sold a ULIP of 1 Lakh with guaranteed returns apparently. Next when I called to clarify some doubt on the product, the RM was already changed. The interesting part is my RM’s have changed every time that I called the RM’s number.
      The responses would be as follows:
      “Sir, I am not your RM anymore, I have either left my job, or transferred to another branch”

      1. Anand

        Thats one big issue with RM .. change of jobs !

  62. Varun says:

    Hi Manish,

    Absolutely, I lost 3lacs due to this. And finally I liquidated partial withdrawal from the one ULIP that I had. Atleast some money came back to me… And finally decided to invest most of the left over in FDs which assured a guaranteed return.

    RMs are their to provide us recommendations in our interest but unfortunately the have been given monthly targets and force them to be biased towards achieving those targets.

    I knew one RM who would wrongly recommend an ULIP one month and pure MF the next month. And was the star performer for the month for a specific branch. Just because an internal contest was launched and the highest revenue achiever would get a special bonus.

    1. Thanks for sharing what happened with you , it will help others !

  63. santosh says:

    I do following funny things to handle my RM:

    1. I never pick up his call, if he calls from his mobile. If he calls from land line then I behave as if the call get one sided, ” hello, hello, hello …… I am unable to get your voice……hello, hello, hello…………….

    2. I never go to the branch where he is sitting. I go to some other branch and get my work done.

    1. Thats really funny !

    2. Srinivas says:

      Well. Talking of how to fend off these sellers/RM’s

      One very effective way of managing them/stop calling you is to become knowledgeable on your requirements.

      For example, i tell him that i like inputs in only in derivatives and real estate and for all other requirements, i depend on my analysis and not advise. Most of them will not call me back.

      1. When you are a learnt person , they stay away from you

  64. naren says:

    Dont agree with the tone of the article. majority of the people I know who have a RM including me use them for getting transactions done – DD/withdrawing money etc etc.For most people the information from RMs is one more source of information.
    Selling is his job, using your judgement to see if what is being sold to you is makes sense or not is your responsibility.It’s your money afterall.Which sales person doesn’t try to seel you things that you don’t need? Does it make all of them parasites? We might want to take a step back and acknowledge our mistakes including following useleess advice instead blaming others. Just my opinion. 🙂

    1. Varun says:

      Hi Naren,

      Those terms & cond. for each Financial instrument is not known to the end customer (ppl like me). And therefore when only a greener side is shown our judgement will OBVIOUSLY be biased towards taking this opportunity.

      Eg: When pure traditional life insurance is sold to customers who already have another insurance stating its an additional cover etc…

      1. naren says:

        Hi Varun
        Agree with you abt not informing the customers abt the T&Cs and therefore we are being misled.
        My point is if your RM or any insurance agent or anyone comes to you for selling something and if you are not able to say no ask them to come back after a week or so and do your research on the net. For every product/scheme launched by every company there are a sufficient number of horror stories available on the net to confront the agent/RM with. When you do this a couple of times they dont come back to you trying to sell bullshhit.

        1. Why will you be not able to say NO ?

          1. ram says:

            Not everyone will be outspoken or comes with a questioning attitude.
            I’m sure the early earners or those freshers who just start earning are most gullible when it comes to the matters of investing.

            I myself was fooled buying under some sec 80ccc or so to save so called 30% bracket tax from a beautiful (though married) girl, only to realize that agent made more than 18% in the first year, and 4% in subsequent years.

            1. Yes not everyone will do , but that will be the cost to pay for any issues happening later !

    2. Naren

      “All politicians are CHOR” does not mean X out of X , all it means is most of them .. so here also I agree that not each and every RM are like what is described in this article . You must be having really a great RM , no doubt in that 🙂

  65. Dhawal Sharma says:

    Hi Manish,

    No one can understand these kind of BLACK SHEEPS more than me (as an individual agent). I meet a lot of people routinely who have been PROVIDED with an INSURANCE POLICY (Now a days Traditional policies – as commission of ULIPs have gone down to single digits) without any logical reason. People have been given whole life policies in the name of savings + investments and public too in their blind trust with their bank have taken the policy without even checking the policy terms and conditions..

    Unlike their names (Relationship Managers), if these guys were really interested in developing a relationship with the account-holder, they will give him TERM PLAN..But i have yet to see a SINGLE person in Delhi city who can show that he has been sold a TERM PLAN by his relationship manager..Strange na??

    Furthermore, this malaise is not limited to PRIVATE BANKs only..PSU banks, especially SBI and PNB are leading the pack. Few of my friends are working in SBI bank and they told me that their work profile is very easy. All they need to do is open the EXCEL sheet of the account-holders of the branch, put FILTER for ones having balance of over 1 lakh for over 6 months or so, and then calling these people that bank guy will be visiting them and they just need to sign a FORM..Of course, this form is for a TRADITIONAL INSURANCE POLICY 😉

    These relationship managers should be made use of for only banking transactions such as draft making, account statement etc. and should be AVOIDED at all costs for financial transactions such as Insurance or Investment (Mutual Fund)..

    I know i will be taken wrongly on our blog once again 🙁 [It happens to me on JI most of the time] but best way to go for insurance is an agent – as proved by this latest study..

    1. Yea Dhawal .. i agree with you , I can understand what you must be facing 🙂

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