RBI Bans Bundling and Dark Patterns in Bank Product Sales

The Reserve Bank of India has issued draft Responsible Business Conduct Directions 2026 that set out new rules for advertising, marketing and selling financial products by commercial banks. 

Key provisions of the RBI draft directions 

Effective July 1, 2026, banks must create a policy covering the sale of their own- and third-party products. The policy must address product suitability, customer feedback, and compensation for mis selling.  

Direct selling agents and direct marketing agents must be listed on bank websites and clearly distinguished from bank staff when operating on premises. Sales are allowed only with explicit customer consent, and consent for multiple products cannot be combined. 

Prohibition on bundling and dark patterns 

Banks are barred from bundling third party products with their own offerings or presenting third party products as their own. Voluntary or complimentary packages are exempt.  

Promotional material must be factual, disclose all fees, charges and interest rates, and avoid dark patterns on digital interfaces. Banks must conduct user testing and periodic internal audits to identify and remove such practices. 

Read More: RBI Moves to Strengthen Cooperative Bank's Financial Health and Digital Access! 

Customer protection and redressal 

Mis selling, defined as unsuitable sales, misleading information or sale without explicit consent, triggers a requirement for banks to refund the amount paid and provide compensation. Customer feedback must be collected within 30 days of a product sale. Sales calls and visits are permitted only between 9 am and 6 pm unless the customer gives specific authorisation. 

Scope and exclusions 

The draft directions apply to commercial banks and exclude small finance banks, payment banks, regional rural banks, and local area banks. The focus is on strengthening responsible business conduct and enhancing consumer confidence in the banking sector. 

Conclusion 

The RBI’s draft directions introduce stricter norms on product marketing, ban bundling of third-party offerings and prohibit dark patterns. Banks must obtain explicit consent, maintain transparent disclosures, and establish robust feedback mechanisms to comply from July 1, 2026. 

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