The Reserve Bank of India (RBI) has introduced new rules to protect bank customers from misleading sales practices.
The central bank has made it clear that banks must treat customers fairly and cannot push unwanted products or make false promises. If any bank is found violating these rules, strict action may be taken against it.
New RBI Guidelines for Banks
On June 15, 2026, the RBI issued the Reserve Bank of India (Commercial Banks) Second Amendment Directions, 2026.
These rules apply to all commercial banks. Separate guidelines have also been issued for small finance banks, payment banks, regional rural banks, and local area banks.
The new directions will come into effect from January 1, 2027. Banks have been given around six and a half months to update their systems and processes before the rules become mandatory.
What Banks Must Do Under the New Rules
The RBI has laid down several important requirements for banks and their agents.
Banks must publish an updated list of all authorized Direct Selling Agents (DSAs) and Direct Marketing Agents (DMAs) on their websites. Any changes must be updated within seven days.
Bank branches must clearly differentiate between bank employees, agents, and third-party representatives through identity cards, uniforms, or other visible identification methods.
Banks will also have to obtain a written undertaking from DSAs and DMAs confirming that they and their sub-agents will follow the bank’s code of conduct.
The code of conduct must be made publicly available on the bank’s website.
Restrictions on Agents and Third-Party Representatives
The RBI has also placed limits on how agents can interact with customers.
Agents can contact customers only between 9:00 AM and 7:00 PM.
They cannot visit a customer’s home or office without permission. They are also not allowed to present themselves as bank employees.
Similarly, third-party representatives cannot claim to be bank staff or make promises on behalf of the bank.
Why Did RBI Introduce These Rules?
The RBI introduced these guidelines after receiving concerns about customers being misled while dealing with banks and their agents.
In many cases, customers visit a bank branch for simple information but are pressured into buying insurance policies, investment products, or other schemes they did not intend to purchase.
Some online services and advertisements can also be confusing, leading customers to unknowingly sign up for products without fully understanding them.
With these new rules, the RBI aims to improve transparency, prevent unfair sales practices, and ensure that customers are treated honestly and fairly by banks and their representatives.
What This Means for Customers
These guidelines are expected to give customers better protection and more transparency when dealing with banks.
Customers will be able to clearly identify who is a bank employee and who is an agent, reducing the chances of being misled.
The RBI’s message is clear: banks must focus on fair customer service, and any attempt to deceive customers could result in strict regulatory action.
