RBI Update -Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Second Amendment Directions, 2026

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Commercial Banks – Responsible Business Conduct) Second Amendment Directions, 2026, effective from 1 January 2027, introducing a comprehensive framework governing the advertising, marketing, and sale of financial products and services by commercial banks. The Directions aim to strengthen customer protection by defining and prohibiting practices such as mis-selling, compulsory bundling, and the use of dark patterns, while mandating explicit customer consent, suitability and appropriateness assessments, transparent disclosures, and fair marketing practices. Banks are required to establish detailed policies covering product suitability, customer compensation, engagement and oversight of Direct Selling/Marketing Agents (DSAs/DMAs), grievance redressal, and feedback mechanisms. The framework also prescribes standards for promotional communications, customer interactions, prevention of coercive sales practices, and compensation in cases of mis-selling, thereby enhancing transparency, accountability, and responsible conduct in the distribution of both bank-owned and third-party financial products and services.