The Reserve Bank of India on Monday introduced a set of regulatory changes aimed at preventing the mis-selling of financial products by banks and other lenders. The package of measures tightens rules around how financial products are marketed and sold and explicitly forbids deceptive user-experience techniques in digital sales channels.
Ban on 'dark patterns'
Under the new guidance, the RBI has prohibited the use of so-called "dark patterns" in digital interfaces. The central bank defines dark patterns as design or user-experience techniques that mislead or trick customers into taking actions they did not intend. The ban covers design elements used across websites, mobile applications and other channels employed by lenders and their agents.
Enhanced consent, disclosure and sales practice standards
In addition to the explicit prohibition on deceptive design, the regulations strengthen requirements related to customer consent, disclosures and the conduct of sales activities. Lenders are required to ensure that consent and disclosure processes are clear and not manipulated by interface design choices.
Audits and compliance timing
The RBI has directed lenders to undertake periodic audits of their digital and other sales interfaces to identify and remove unfair features. These audit obligations are part of the amended directions on responsible business conduct and are intended to detect and eliminate interface elements that could mislead customers.
According to the central bank, the directive follows announcements made by the RBI's governor in the monetary policy review in February. The full suite of rules introduced as amendments to the responsible business conduct directions will come into force on January 1, 2027.
Implications by sector
- Banking and consumer finance - Directly affected through tightened sales and disclosure rules.
- Fintech and digital lending platforms - Subject to the prohibition on misleading interface designs across digital channels.
- Digital product and UX teams within financial firms - Will face new audit and compliance responsibilities.