Synopsis: RBI proposed 10 banking rules that could significantly change how banks sell loans, insurance, mutual funds, and credit cards by introducing stricter consent requirements, curbing mis-selling, and banning deceptive sales practices.
The Reserve Bank of India has come out with some rules to make it easier for people to buy financial products like insurance policies and credit cards. When the rules start on July 1 2026 they will change the way banks sell products in India.
What Are the Key Changes Proposed by RBI?
1. Banks Cannot Make Customers Buy More Things
Banks are not allowed to force customers to buy things like insurance or investments when they want a loan or other bank services. Customers should be able to choose what they want from whoever they want.
2. Banks Need to Get Clear Permission
Banks have to ask customers separately if they want to buy something, they cannot just put everything together and sell it as a bundle. Customers must separately approve each product or service, so that the chance of buying something accidently in which they are not interested reduces.
3. Stopping Banks from Misselling
The Reserve Bank of India says that selling things that’re not right for someone, giving them wrong information or not asking for permission is all wrong. This will help protect customers and stop banks from being too pushy.
4. Banks Have to Make Sure Products are Right for Customers
Banks need to check if something’s right for a customer based on how old they are, how much money they make, if they have financial literacy and if they can handle risk. The goal is to make sure customers get things that’re good for them.
5. Banks Must Tell Customers About All Costs and Risks
When banks try to sell something they have to be clear about interest, fees and all the important details like terms and conditions. Customers should know everything before they decide.
6. New Rules for Sales Calls and How Banks Sell Things
Banks and the people who work for them can usually only call customers between 9 in the morning and 6 in the evening unless the customer says it is okay to call at other times. They also cannot use tricks to get customers to buy things.
7. The Reserve Bank of India Wants to Stop Tricks on Bank Websites and Apps
The new rules say that banks cannot use tricks like adding extra things, sending fake messages that say something has to be done right now, hiding costs or making it hard to cancel things. Banks have to check their websites and apps to make sure they are not doing these things.
8. It Should be Easy for Customers to Stop Getting Sales Messages
Customers should be able to stop getting sales messages easily as they can start getting them, banks also have to show customers all the things they are signed up for.
9. Bank Sales People Have to Follow the Rules
Banks are responsible for the behaviour of Direct Selling Agents (DSAs) and Direct Marketing Agents (DMAs) involved. Sales people have to say who they actually are and not pretend to be someone else.
10. Customers Should Get Their Money Back if Something was Sold Wrongly
If a bank sells something to a customer that they should not have, the bank might have to give the customer all their money and pay for any problems it caused, this could help customers a lot.
What does it Mean for the Customers
If these rules are put into place buying loans and credit cards and insurance will be more straightforward. This is because there will be a fewer chance of people being sold things they do not need and fewer hidden fees. Customers will have power because they will have to give their approval before anything can be done. They will also have protection, against people trying to sell them things in a way that is not fair. The rules will help stop loans and credit cards and insurance from being sold in a way that’s unfair.
Written by Shreya Tiwari
