From January 1, 2027, new RBI rules will introduce stricter requirements for how banks sell and market financial products to customers.
The focus is on preventing mis-selling, improving transparency and making sure customers clearly understand what they are buying.
WHAT WILL CHANGE?
NO FORCED BUNDLING
Banks cannot make customers buy one financial product as a condition for getting another banking service, subject to specified exceptions.CLEAR CUSTOMER CONSENT
Banks will need clearer and more explicit customer consent before selling financial products such as insurance and other third-party products.DARK PATTERNS UNDER FOCUS
Banks will have to avoid practices or digital designs that can mislead customers or push them into choices they did not intend to make.CLEARER PRODUCT DETAILS
Customers should receive important information about product features, fees, charges and other key terms before making a decision.MORE RESPONSIBILITY ON BANKS
Banks will have greater responsibility for sales practices involving products distributed through third parties.
WHAT DOES THIS MEAN FOR YOU?
If your bank offers you insurance, a loan, credit card, investment or another financial product, don't simply accept it because it is presented along with a banking service.
Before buying, check:
• Is the product mandatory or optional?
• What are the fees and charges?
• What are the terms and conditions?
• Is it a bank product or a third-party product?
• Have you clearly consented to buying it?
THE BIGGER PICTURE
The RBI's new framework aims to make financial product sales more transparent and customer-focused.
From January 2027, customers can expect stronger safeguards around how banks sell insurance, loans, credit cards and other financial product
