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

The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Payments Banks – Responsible Business Conduct) Second Amendment Directions, 2026, effective from 1 January 2027, establishing a comprehensive framework for the advertising, marketing and sale of financial products and services by Payments Banks (PBs). The Directions introduce key concepts such as mis-selling, compulsory bundling, dark patterns, and explicit customer consent, while mandating suitability and appropriateness assessments, transparent disclosures, fair marketing practices, and robust grievance redressal mechanisms. PBs are required to formulate detailed policies governing customer protection, engagement and oversight of Direct Selling Agents (DSAs) and Direct Marketing Agents (DMAs), customer feedback, and compensation in cases of mis-selling. The framework also prohibits deceptive digital interface practices, coercive sales tactics, and unauthorised promotional communications, thereby strengthening transparency, accountability, and responsible conduct in the distribution of both own and third-party financial products and services by Payments Banks.