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RBI on Misselling and Dark Patterns: If you go to any bank for a loan and the bank hands you multiple insurance policies and cards along with the loan, then this news is for you. Now, banks will not be able to sell insurance policies in a single click without your consent. The Reserve Bank of India has introduced new rules regarding misselling and dark patterns, which will come into effect from July 1, 2026. These rules will completely change banking sales strategies. Let us explain in detail what these rules contain and what you will face if you are mis-sold.

In the past, it has often been seen that customers go to a bank to take out a loan or open an account and are also offered insurance, mutual funds, or a credit card. Often, the customer is either not fully informed or doesn't understand what they have agreed to. Pressing a single "I Agree" button on a digital form would automatically add approval for multiple services. Later, it would be discovered that they had inadvertently accepted an additional product. RBI believes such practices are not in the best interest of customers. Therefore, banks will now be required to obtain separate, clear, and unambiguous consent for each product.

Selling according to each customer's profile
According to the new rules, banks will be required to verify that the product they are selling matches the customer's needs and profile. For example, if someone with a limited income is sold a complex investment plan, this would be considered mis-selling. If a product does not match the customer's situation and is still sold, it would be officially considered mis-selling. Banks will also be required to clearly state whether the product they are selling is from the same bank or from another company. This will ensure accurate information for the customer.

Ending the era of one-click approvals
Digital platforms often use pre-ticked boxes or require acceptance of multiple conditions at once. This will no longer be the case. Separate consents will be required for each product. The customer will be clearly informed of what they are agreeing to. Banks will also be required to keep records of these measures securely. This will prevent hidden agreements and complicated consent systems.

Crackdown on Dark Patterns
The RBI has also targeted digital tactics known as dark patterns. These are tactics that mislead customers, such as pre-ticked consent boxes or creating pressure by displaying a clock like "Today is the last chance." Banks will now be required to regularly audit their apps and websites and remove such misleading features. This will make digital banking more transparent and reliable.

Banks are also responsible for agents.
Some people in bank branches are often not actual bank employees, but third-party agents. Customers mistake them for bank officials. Under the new rules, banks will be required to publicly list such agents. They will also be responsible for their training. Agents will also be required to clearly state that they are not permanent employees of the bank. Furthermore, bank employees and agents will only be able to call customers during established office hours. This will reduce unwanted calls and pressured sales.

What happens if fraudulent sales are proven?
If the investigation proves that the bank sold a product incorrectly or did not provide complete information, the bank will be required to return the customer's money. Furthermore, if the customer has suffered financial losses, they will also be required to compensate for that loss. The bank must obtain customer feedback within 30 days of each sale and prepare a complete report every six months to ensure accountability.

When will the rules be implemented?
These are currently draft guidelines. Suggestions are available until March 4, 2026. The final rules are planned to be implemented on July 1, 2026. Banks will need to make necessary changes to their policies, digital systems, and agent arrangements before then.

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