RBI Draft Directions on Advertising and Sales by Regulated Entities

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:

• Banks must put in place a comprehensive policy governing the advertising, marketing, and sale of:

1. 1. Their own financial products and services, and
   2. 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.

• 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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