The Reserve Bank of India (RBI) has suggested prohibiting third-party incentives to bank staff for selling financial products to prevent mis-selling. Additionally, the RBI has banned the use of “dark patterns” on bank interfaces to entice customers into purchases. The central bank emphasized that employees should not receive any incentives from third parties for marketing or selling their products or services.
Under the Draft Amendment Directions, banks are instructed not to tie the sale of third-party products with their own offerings. Customers should have the freedom to purchase from other providers without any conditions. In cases of mis-selling, banks are required to refund the full amount and compensate customers for any losses as per approved policies.
Customers are allowed to report mis-selling within specified timelines to the financial regulators. Banks must gather feedback from customers within 30 days of a sale to ensure understanding of product features and risks. The RBI has outlined guidelines to prevent incentives for mis-selling and discourage the forceful promotion of products or services among employees.
Moreover, the RBI has established rules for direct selling agents (DSAs), limiting contact hours to 9 am to 6 pm unless approved by customers. These measures aim to enhance transparency and accountability in the marketing and sales of financial products.
