India, Feb. 24 -- Finance Minister Nirmala Sitharaman on Monday came down heavily on banks for mis-selling of financial products, including insurance and urged them to focus on core business.

"Banks should concentrate on their core business... My pet peeve has always been .... You're spending more time on selling insurance when it is not required, and conveniently, it fell between two stools (of RBI and IRDAI)," Sitharaman told reporters after her customary post-Budget address to the Central Board of the RBI.

On February 11, the RBI had issued draft guidelines on mis-selling, saying banks will have to refund the entire amount paid by the customer for purchase of the product or service and also compensate the customer for any loss arisin...