RBI Issues Revised Directions on Advertising and Sale of Financial Products
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- Last Updated on 22 June, 2026
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PR no. 2026-2027/460; Dated: 15.06.2026
The Reserve Bank of India (RBI) has issued amendment directions on ‘Advertising, Marketing and Sale of Financial Products and Services by Regulated Entities (REs)’. The revised framework seeks to strengthen customer protection, enhance transparency in sales practices and curb instances of mis-selling of financial products and services.
1. Framework for Engagement of DSAs and DMAs
The directions prescribe norms relating to the engagement and oversight of:
- Direct Selling Agents (DSAs); and
- Direct Marketing Agents (DMAs).
Regulated Entities are required to ensure that such agents operate in accordance with the prescribed standards and comply with the RBI’s customer protection framework.
2. Customer Consent Requirements
The amended directions contain provisions on obtaining and managing customer consent for the marketing and sale of financial products and services.
The objective is to ensure that customer interactions are based on informed consent and conducted transparently.
3. Conduct Standards for Employees and Agents
The framework lays down conduct requirements applicable to:
- Employees of regulated entities;
- DSAs and DMAs; and
- Their sub-agents.
These provisions are intended to promote ethical sales practices and ensure fair treatment of customers throughout the sales process.
4. Suitability Assessment for Individual Customers
The directions emphasise the need to assess the suitability of financial products for individual customers before offering or recommending them.
This requirement seeks to ensure that products are aligned with the customer’s needs, risk profile and financial circumstances.
5. Measures to Prevent Mis-Selling
The amended framework introduces safeguards aimed at preventing:
- Misleading sales practices;
- Inappropriate product recommendations; and
- Mis-selling of financial products and services.
The measures are designed to strengthen consumer confidence and improve the quality of financial product distribution.
6. Customer Feedback Mechanism
The directions also require the establishment of a mechanism for:
Obtaining customer feedback
regarding the marketing and sale of financial products and services.
The feedback framework is intended to help regulated entities monitor sales practices and identify potential concerns relating to customer experience and conduct.
7. Objective of the Amendment Directions
The revised directions seek to promote responsible marketing and sales practices across the financial sector by strengthening governance over agents, improving customer consent processes, enhancing suitability assessments and preventing mis-selling. The introduction of a customer feedback mechanism further supports the RBI’s objective of ensuring fair and transparent treatment of customers by regulated entities.
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