US EditionIndia's Central Bank Proposes Rules to Tighten Bank Sales Practices
RBI's draft rules ban incentives for bank staff selling third-party products and mandate customer consent to prevent mis-selling and ensure compensation for affected customers.
- Wednesday's draft from the RBI sets norms on advertising and sales of financial products by commercial banks, effective July 1, 2026.
- To curb mis‑selling, the draft targets insurance and mutual funds, defining it as unsuitable sales, misleading information, and sales without explicit consent, while banning third-party incentives to bank staff.
- Banks must obtain explicit consent for each product and cannot club consents, must refund and compensate customers if mis-selling is proven, and publish updated lists of agents online.
- RBI has sought public comments on the draft, setting conduct norms for direct selling agents between 9 am and 6 pm and warning lenders against loans without customers' explicit consent.
- The draft bars compulsory bundling of third‑party products while allowing customers to buy elsewhere, user interfaces must undergo audits to detect 'dark patterns', and banks must adopt comprehensive sales policies.
15 Articles
15 Articles
Times of India
The Economic Times100% refund for mis-sold financial products and crackdown on dark patterns: How RBI’s new draft can benefit customers
The Reserve Bank of India is implementing stricter regulations against financial institutions for mis-selling products. New draft directions, effective July 1, 2026, aim to prevent mis-selling by banning dark patterns and forced bundling. These rules mandate clear information, customer consent, and establish mechanisms for feedback and compensation for affected customers.
RBI to tighten noose on mis-selling of financial products; issues draft amendment directions on sales, marketing - The Tribune
A key highlight of the draft directions is a clear prohibition on 'compulsory bundling,' defined as making the availability of one product or service conditional upon the purchase of another, whether offered by the bank itself or a third party. The RBI has also introduced a detailed definition of 'mis-selling,' covering instances such as selling products unsuitable for a customer's profile, providing misleading or incomplete information, selling…
RBI draft rules on mis-selling: Central bank suggests refunds, ad frameworks, warns against ‘dark patterns’
In an effort to combat mis-selling, RBI proposed draft guidelines requiring explicit customer consent for financial products and compensation for mis-selling. Comments are sought before final rules take effect on July 1, 2026, enhancing consumer protection in banking.
Mis-selling: Banks to refund, compensate customers, says RBI
The RBI on Wednesday issued comprehensive draft instructions on advertising, marketing and sales of financial products and services for banks to prevent mis-selling and compulsory bundling of financial products
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