In a move to rein in banks from shirking on its onus to take responsibility on the sale of third party financial instruments through the banking channel, the RBI has amended the Banking Ombudsman Scheme. Now, the RBI has allowed the banking ombudsman to impose a fine of up to Rs 20 lakh on banks for mis-selling of third party products, such as insurance and mutual funds. The fine that the ombudsman can levy has doubled from the earlier Rs 10 lakh. These new rules are applicable from July 1, 2017.