The Reserve Bank of India (RBI) has issued draft Amendment Directions on advertising, marketing, and sales of financial products and services by regulated entities, inviting public comments until March 4, 2026. Currently, customer appropriateness and suitability guidelines largely apply to Scheduled Commercial Banks (excluding Regional Rural Banks) and Housing Finance Companies in the context of insurance agency business. After review, the RBI has proposed comprehensive instructions applicable to all banks and NBFCs, covering third-party products, Direct Sales Agents (DSAs), Direct Marketing Agents (DMAs), prevention of mis-selling, and dark patterns. The draft amendments seek to update Responsible Business Conduct Directions across various categories of banks, financial institutions, NBFCs, and Housing Finance Companies. Additionally, the framework on ‘Agency Business and Referral Services’ under the Undertaking of Financial Services Directions, 2025, is proposed to be amended. Stakeholders may submit feedback through the ‘Connect 2 Regulate’ portal or via email.
Reserve Bank of India
Date : Feb 11, 2026
RBI Issues Draft Amendment Directions for ‘Advertising, Marketing and Sales of Financial Products and Services by Regulated Entities’
Currently, instructions on customer appropriateness and suitability and other related matters in the context of insurance agency business have been issued to Scheduled Commercial Banks (excluding Regional Rural Banks) and Housing Finance Companies. Upon a review, it has been decided to issue comprehensive instructions on advertising, marketing and sales of financial products and services (including third-party products and services) to all banks and NBFCs, which shall include various aspects related thereto, such as activities of Direct Sales Agents (DSAs) / Direct Marketing Agents (DMAs), dark patterns, prevention of mis-selling, etc.
2. Accordingly, in pursuance of the announcement made in the Statement on Developmental and Regulatory Policies dated February 6, 2026, the Reserve Bank of India (RBI) has today issued the following draft Amendment Directions for public comments, which propose to amend existing Directions issued by the Department of Regulation, RBI.
i. Reserve Bank of India (Commercial Banks – Responsible Business Conduct) Amendment Directions, 2026
iii. Reserve Bank of India (Payments Banks – Responsible Business Conduct) Amendment Directions, 2026
iv. Reserve Bank of India (Local Area Banks – Responsible Business Conduct) Amendment Directions, 2026
x. Reserve Bank of India (Housing Finance Companies) Amendment Directions, 2026
3. In the above backdrop, the regulatory framework on ‘Agency Business and Referral Services’ offered by REs, issued vide Reserve Bank of India (Undertaking of Financial Services) Directions, 2025, has also been reviewed and is proposed to be amended through issuance of the following draft Amendment Directions:
4. The comments / feedback on the draft Amendment Directions may be submitted by the regulated entities and members of public / other stakeholders on or before March 4, 2026through the following channels:
i. the ‘Connect 2 Regulate’ section on the website by following the corresponding hyperlink provided against each document in the page where they are hosted; or
ii. by email with the subject line ‘Feedback on (full name of the draft Amendment Directions (including the type of Regulated Entity))’.
(Brij Raj)
Chief General Manager
Press Release: 2025-2026/2091
