RBI proposes stricter rules to curb mis-selling and deceptive bank practices

The Reserve Bank of India announced a draft circular on February 11, 2026, proposing stricter regulations to overhaul advertising, marketing, and sales conduct across the banking sector. The proposal aims to curb deceptive practices by introducing bans on dark patterns in advertising, mis-selling, and conditional product bundling. This regulatory move follows a period of documented mis-selling practices that have impacted both consumers and financial institutions across India IN.

The draft circular covers the sale and promotion of both the Banks (Indian) own Financial products and services and those offered by Third-party financial product providers. By targeting the entire spectrum of advertising and marketing, the Reserve Bank of India seeks to ensure higher standards of transparency and fairness. The proposed rules specifically address the use of dark patterns, which are user interface designs intended to trick or manipulate consumers into making choices that may not be in their best interest.