RBI Cracks Down on Mis-selling: Big Relief for Customers, New Rules for Banks

• RBI proposes new guidelines to prevent banks from mis-selling financial products like insurance.
• Banks and their employees are prohibited from receiving third-party incentives for selling products.
• Forced bundling of products is banned; customers must have freedom to choose providers.
• Full refund and compensation mandated if mis-selling is proven; customer feedback within 30 days is now mandatory.
• Restrictions on direct selling agents, prohibition of 'dark patterns' on digital platforms, and mandatory suitability checks for all products.