RBI Update -Reserve Bank of India (All India Financial Institutions - Responsible Business Conduct) Second Amendment Directions, 2026

The Reserve Bank of India (All India Financial Institutions – Responsible Business Conduct) Second Amendment Directions, 2026 introduce a comprehensive regulatory framework governing the advertising, marketing, and sale of financial products and services by AIFIs, effective from 1 January 2027. The Directions define key concepts such as compulsory bundling, dark patterns, explicit consent, mis-selling, DSAs/DMAs, and third-party products and services (TPPS), and mandate AIFIs to adopt a board-approved policy covering product suitability, customer protection, compensation for mis-selling, and oversight of sales intermediaries. AIFIs must ensure transparent marketing, obtain explicit customer consent, provide clear disclosures of product features, charges, risks, and terms, and prohibit deceptive user-interface practices and dark patterns. The framework also prescribes conduct standards for employees, DSAs/DMAs and TPPS representatives, requires assessment of product suitability and appropriateness before sale, mandates separate and clear consent for multiple products, and prohibits compulsory bundling and incentive structures that encourage mis-selling. Further, AIFIs must establish customer feedback mechanisms, provide refunds and compensation in proven mis-selling cases, maintain public disclosure of engaged DSAs/DMAs, and ensure compliance with RBI, SEBI, IRDAI, PFRDA, DoT, TRAI and CCPA guidelines, thereby strengthening customer protection, transparency, and responsible business conduct across the financial services ecosystem.