The Reserve Bank of India (RBI) has issued a series of amendment directions aimed at strengthening the framework governing the advertising, marketing, and sale of financial products and services by regulated entities, including banks, NBFCs, and housing finance companies.

The revised regulations follow a consultation process initiated in February 2026, when the RBI released draft amendment directions seeking stakeholder feedback on responsible business conduct. The proposals covered key areas such as the sale of third-party financial products, activities of Direct Selling Agents (DSAs) and Direct Marketing Agents (DMAs), prevention of mis-selling, and restrictions on the use of misleading or manipulative digital practices, commonly referred to as "dark patterns."

After reviewing stakeholder feedback, the RBI has incorporated necessary modifications and issued the final amendment directions. The new rules will come into effect from January 1, 2027 and will apply across a wide range of regulated entities, including commercial banks, small finance banks, payment banks, regional rural banks, cooperative banks, all-India financial institutions, NBFCs, and housing finance companies.

In a parallel move, the central bank has also finalized amendments to the regulatory framework governing Agency Business and Referral Services offered by regulated entities. These changes, issued under the RBI's Undertaking of Financial Services Directions, seek to strengthen oversight of referral arrangements and financial service distribution activities conducted by regulated entities.

The RBI said the amendments are intended to promote responsible business conduct, enhance customer protection, improve transparency in financial product distribution, and reduce the risk of mis-selling across the financial sector.

The updated framework is expected to establish clearer standards for marketing practices and customer engagement while ensuring that financial institutions adopt fair and responsible conduct in offering products and services to consumers.