RBI Cracks Down on Mis-selling: Bans Dark Patterns, Third-Party Bundling by Banks

• RBI issues draft Responsible Business Conduct Amendment Directions, 2026, effective July 1, 2026, for commercial banks.
• Banks must create policies for product suitability, customer feedback, and mis-selling compensation.
• Prohibits bundling third-party products with own offerings and marketing them as their own.
• Bans 'dark patterns' on user interfaces; sales calls restricted to 9 am-6 pm unless authorized.
• Mandates customer feedback within 30 days of sale and compensation for established mis-selling.