RBI Draft Directions on Advertising and Sales by Regulated Entities
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- Last Updated on 14 February, 2026
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Press Release no. 2025-2026/2091; Dated: 11.02.2026
The Reserve Bank of India (RBI) has issued draft amendment directions relating to the Advertising, Marketing and Sales of Financial Products & Services by Regulated Entities (REs).
The draft directions aim to strengthen governance, enhance customer protection, and ensure responsible selling practices in the financial sector.
1. Requirement to Frame a Comprehensive Board-Approved Policy
Under the proposed amendments:
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Banks must put in place a comprehensive policy governing the advertising, marketing, and sale of:
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- Their own financial products and services, and
- Third-party financial products and services
The policy is expected to be board-approved and aligned with regulatory expectations.
2. Suitability and Appropriateness Assessment
A key feature of the draft directions is the requirement that the policy must clearly define:
- Criteria for determining the suitability of financial products/services for customers
- Standards for assessing the appropriateness of products/services before offering them
This is intended to:
- Prevent mis-selling
- Ensure products are aligned with customer needs and risk profiles
- Strengthen transparency and informed decision-making
3. Regulatory Objective
The draft amendments seek to:
- Promote responsible advertising and sales practices
- Enhance customer-centricity in product distribution
- Improve internal oversight and accountability within banks
- Align marketing practices with fair conduct principles
4. Public Consultation
The RBI has invited comments from stakeholders and regulated entities on the draft directions.
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Last date for submission of comments – 4 March 2026
Feedback received will be considered before finalising the amended framework.
5. Key Takeaway
If implemented, the draft amendments will require banks to adopt a structured, policy-driven approach to advertising and sales, with clear safeguards on suitability and appropriateness, thereby strengthening consumer protection standards.
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