The Reserve Bank of India (RBI), on February 11, 2026, issued draft Amendment Directions for public comments to strengthen the regulatory framework governing advertising, marketing and sale of financial products and services by Regulated Entities (REs). The move follows the announcement made in the Statement on Developmental and Regulatory Policies dated February 6, 2026. The draft directions aim to introduce comprehensive and harmonised instructions applicable to all banks and NBFCs, covering third-party products and services as well.
The proposed amendments seek to address customer appropriateness and suitability, activities of Direct Sales Agents (DSAs) and Direct Marketing Agents (DMAs), prevention of mis-selling, use of dark patterns, and responsible business conduct. Accordingly, draft amendments have been issued across multiple categories of REs including Commercial Banks, Small Finance Banks, Payments Banks, Local Area Banks, Regional Rural Banks, Urban and Rural Co-operative Banks, All India Financial Institutions, NBFCs, and Housing Finance Companies. In addition, the framework on ‘Agency Business and Referral Services’ under the RBI (Undertaking of Financial Services) Directions, 2025 has been reviewed and corresponding draft amendents have also been released.
Stakeholders, including regulated entities and members of the public, have been invited to submit comments by March 4, 2026, either through the ‘Connect 2 Regulate’ section on the RBI website or via email with the prescribed subject line.
