In order to increase transparency in the system, the regulator has directed banks to disclose the commission that it received from the insurers and mutual funds for referring its products to their customers.

Reserve bank, in a notification, said, "It has since been decided that banks should disclose to the customers, details of all the commissions/other fees (in any form) received, if any, from the various mutual fund, insurance, other financial companies for marketing, referring their products."

The apex bank said that these would come into effect immediately.

Banks do not need any prior approval of RBI for either Bancassurance or referring mutual funds to their customers.

Reserve bank has recently asked banks to increase provisioning requirements for NPAs (non performing assets) to 70 percent and wants the banks to achieve this by September 2010. However, banks are not satisfied with RBI's norm (oct 30)and have requested it to extend the deadline.