The Reserve Bank of India (RBI) has taken a major step to protect bank customers from misleading sales practices.
The central bank has made it clear that banks cannot force products or schemes on customers or provide misleading information to increase sales.
If any bank is found violating these rules, it could face strict action from the RBI.
New RBI Guidelines Announced
On June 15, 2026, the RBI issued the “Reserve Bank of India (Commercial Banks) Second Amendment Directions, 2026.”
These rules will apply to all commercial banks across the country.
Separate provisions have also been included for small finance banks, payment banks, regional rural banks, and local area banks.
The new guidelines will come into effect from January 1, 2027.
Banks have been given around six and a half months to make the necessary changes to their systems and processes.
What Banks Will Have to Do
The RBI has introduced several measures to improve transparency and protect customers.
List of Agents Must Be Public
Banks will have to publish and regularly update the list of all their authorized Direct Selling Agents (DSAs) and Direct Marketing Agents (DMAs) on their websites.
Any changes in the list must be updated within seven days.
Clear Identification of Staff and Agents
Customers should be able to easily identify whether they are dealing with a bank employee, an agent, or a third-party representative.
Banks will have to ensure there is a clear distinction through identity cards, uniforms, or other methods.
Agents Must Follow a Code of Conduct
Banks will be required to obtain a written commitment from their agents and sub-agents that they will follow the bank’s official Code of Conduct.
The Code of Conduct must also be displayed publicly on the bank’s website.
Restrictions on Agents Contacting Customers
The RBI has also laid down strict rules on how agents can approach customers.
Agents can contact customers only between 9 AM and 7 PM.
They cannot visit a customer’s home or office without permission.
They are not allowed to present themselves as bank employees.
Third-party representatives cannot make promises on behalf of the bank.
No agent can claim to be an official member of the bank’s staff.
Why Has RBI Taken This Step?
The RBI introduced these rules after receiving concerns about customers being misled by banks and their agents.
In many cases, customers visiting a bank for basic information are pressured into buying insurance policies, investment products, or other schemes.
Similarly, some online promotions and offers may confuse customers and lead them to purchase products without fully understanding the details.
With these new guidelines, the RBI aims to make banking more transparent and ensure that customers receive clear and accurate information before making any financial decisions.
What It Means for Customers
The new rules are expected to give customers greater protection and more control over their banking decisions.
Once the guidelines come into force, customers can expect better transparency, fewer misleading sales tactics, and a clearer distinction between bank employees and third-party agents.
