reserve Bank of India
RBI on Mis Selling and Dark Pattern: If you go to any bank for a loan and along with giving the loan the bank gives you many insurance and cards, then this news is for you only. Now banks will not be able to sell insurance policies in one click without your consent. The Reserve Bank of India has introduced new rules regarding miss selling and dark patterns, which will come into effect from July 1, 2026. Under these rules, strategies related to banking sales will change completely. Let us tell you in detail what are these rules and what will you get if you miss selling?
Till now it has often been seen that a customer goes to the bank to take a loan or open an account and is also given insurance, mutual fund or credit card along with it. Many times the customer does not get complete information, or does not understand what he has agreed to. By pressing a single I Agree button in the digital form, approval for many services was automatically added. It would later be discovered that you had unknowingly accepted an additional product. RBI believes that such practices are not in the interest of customers. Therefore, now banks will have to take separate, clear and unambiguous consent for each product.
Sales according to each customer’s profile
According to the new rules, the bank will have to check whether the product it is selling suits the needs and profile of the customer or not. For example, if someone has limited income and is sold a complex investment plan, it would be considered wrong. If a product does not match the customer’s condition and is still sold, it will be officially considered mis-selling. The bank will also have to clarify whether the product it is selling is from the same bank or from some other company. With this the customer will be able to get correct information.
Approval round ends with one click
On digital platforms, the method of accepting pre-ticked boxes or multiple conditions was often adopted. Now this will not happen. Different consent will be required for each product. The customer will be clearly told what he is saying yes to. The bank will also have to keep its records safe. This will put a stop to hidden agreements and complex consent systems.
Strictness on dark patterns too
RBI has also targeted those digital methods which are called dark patterns. These are the ways in which the customer is misled. Like an already ticked consent box, creating pressure by showing a clock like today is the last chance. Now banks will have to regularly check their apps and websites and remove such misleading features. This will make digital banking more transparent and reliable.
The responsibility of the agent is also on the bank.
Often some people sitting in bank branches are not actual bank employees, but are third party agents. Customers mistake them for bank officials. Under the new rules, the bank will have to make public the list of such agents. The bank will also be responsible for their training. Also, the agent will have to clearly state that he is not a permanent employee of the bank. Apart from this, bank employees and agents will be able to call customers only during scheduled office hours. This will reduce unwanted calls and pressure sales.
What if mis-selling is proven?
If the investigation proves that the bank has wrongly sold a product or has not given complete information, then the bank will have to return the customer’s money. Not only this, if the customer suffers financial loss then he will also have to compensate for it. The bank will have to take feedback from the customer within 30 days of every sale. Also, a complete report will have to be prepared every six months, so that accountability can be fixed.
When will the rules come into effect?
At present these are draft guidelines. Suggestions on these can be given till March 4, 2026. The final rules are planned to be implemented from July 1, 2026. Before this, banks will have to make necessary changes in their policies, digital system and agent system.
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