RBI Introduces Rules to Ban Deceptive Sales Practices by Lenders
The Reserve Bank of India released new regulations on Monday aimed at preventing the mis‑selling of financial products by lenders. The rules specifically ban the use of "dark patterns" in digital interfaces, which the RBI defines as design or user‑experience techniques that mislead or trick customers into taking actions they did not intend. Lenders and their agents are prohibited from employing such practices on websites, mobile applications, and any other sales channels.
In addition to the ban, the regulations strengthen requirements for obtaining explicit customer consent, providing clear disclosures, and ensuring fair sales practices. Lenders must conduct periodic audits of their digital interfaces to identify and remove any unfair features.
These measures amend the RBI’s existing responsible business conduct directions and are scheduled to take effect on 1 January 2027. The directive follows statements made by the RBI governor during the February monetary policy review, underscoring the central bank’s focus on consumer protection in the financial sector.