TITLE: India's Reserve Bank Issues Amendment Directions on Financial Product Advertising and Marketing
BODY:
On June 15, 2026, the Reserve Bank of India (RBI) issued amendment directions establishing comprehensive instructions on advertising, marketing, and sale of financial products and services by regulated entities. The directions follow a consultation period on draft amendments announced in the RBI's Statement on Developmental and Regulatory Policies dated February 6, 2026, with draft directions released on February 11, 2026.
The amendment directions address advertising and marketing practices across multiple categories of regulated entities, including commercial banks, small finance banks, payments banks, local area banks, regional rural banks, urban and rural co-operative banks, all-India financial institutions, non-banking financial companies (NBFCs), and housing finance companies. The directions cover comprehensive aspects of financial product promotion, including activities of Direct Selling Agents (DSAs) and Direct Marketing Agents (DMAs), dark patterns in marketing, prevention of mis-selling, and sale of third-party financial products and services.
The RBI simultaneously issued separate amendment directions addressing agency business and referral services offered by regulated entities under the Reserve Bank of India (Undertaking of Financial Services) Directions, 2025. These amendments incorporate stakeholder feedback received during the consultation period, with detailed statements on feedback provided in accompanying annexes.
Both sets of amendment directions—covering responsible business conduct and undertaking of financial services—apply to the same range of regulated entities and shall come into effect on January 1, 2027. The directions establish a unified regulatory framework governing how banks, NBFCs, and other financial institutions may advertise, market, and sell financial products to consumers.
REFERENCES:
https://www.rbi.org.in/web/rbi/-/press-releases/rbi-issues-amendment-directions-on-advertising-marketing-and-sale-of-financial-products-and-services-by-regulated-entities-1265