These directions are applicable to Rural Coop Banks, Urban Coop Banks, Regional Rural Banks, Local Area Banks, Small Finance Banks Payments Banks, Commercial Banks, NBFCs, AII India Financial Institutions and Housing Finance Companies. The amendments prohibit mis-selling, compulsory bundling, and the use of deceptive “dark patterns” in digital interfaces. Banks must obtain explicit customer consent before offering products, provide clear disclosures regarding fees, risks, and terms, and assess the suitability and appropriateness of products for individual customers. The directions impose stricter oversight over Direct Selling Agents and Marketing Agents through codes of conduct, disclosure obligations, and accountability mechanisms.
(Link: RBI Circular 124/2026 (HFC), 123/2026 (NBFC), 122/2026 (AIFI), 121/2026 (RCB), 120/2026 (UCB), 119/2026 (RRB), 118/2026 (LAB), 117/2026 (PB), 116/2026 (SFB), 115/2026 (CB) Dated 15/06/2026)