RBI bans dark patterns and mis-selling by banks from 1 January 2027

RBI's new rules on how banks advertise, market and sell financial products take effect on 1 January 2027. The Reserve Bank issued them on 15 June 2026 as the Responsible Business Conduct Second Amendment Directions, 2026 (RBI/2026-27/115). They apply to commercial banks other than small finance banks, payments banks, regional rural banks and local area banks.

Every product now needs the customer's explicit consent, recorded through a signed declaration, an OTP, a recorded confirmation or a clearly marked section of the agreement. Where one form covers several products, each must be listed and the customer must be able to pick only the ones wanted. On any app or website, the default consent choice must be 'No' or 'I do not agree', and consent cannot be given without going through the terms.

Banks may not make one product conditional on buying another, which RBI calls compulsory bundling. They also may not fund a product out of a customer's loan without explicit consent. Promotional messages need the customer's explicit consent, unsubscribing must be simple, and sales calls and visits should normally fall between 9 am and 7 pm unless the customer asks otherwise. Before consent, banks must show the fees, interest rate, risks, lock-in and exit terms, in the KFS or MITC format where RBI prescribes one.

RBI's list of banned dark patterns names credit cards directly. Making a card easy to sign up for but hard to cancel, with no direct link or with several confirmation steps, is a subscription trap. Offering a lifetime free credit card without stating the spend or other condition needed for the fee waiver is bait and switch. So is nudging customers to transact more for cashback or reward points when the fine print adds further conditions. Countdown timers on reward offers, 'Offer Ends Soon' messages and add-ons ticked by default are also on the list.

If mis-selling is established, the bank must refund the entire amount paid for the product, tell the customer the sale is cancelled and compensate any loss under its own policy. Where the product's regulator sets no deadline, the customer can complain within 30 days of receiving the signed terms. Banks must also ask customers for feedback within 30 days of a sale.

The direction is addressed to banks. Card issuers that are not banks, such as SBI Card, are not named in it. For how fee waivers and closures work today, see our guides to getting a lifetime free credit card, closing a credit card and complaints and the RBI Ombudsman, and the lifetime free credit cards in our catalogue.