The Reserve Bank of India (RBI) on Wednesday released draft amendment directions on the advertising, marketing and sale of financial products and services by regulated entities, and invited public comments on the proposals.

At present, guidelines on customer appropriateness, suitability and related issues—mainly in the context of insurance agency business—apply only to Scheduled Commercial Banks (excluding Regional Rural Banks) and Housing Finance Companies. Following a review, the RBI has decided to issue a comprehensive framework covering advertising, marketing and sales of financial products and services, including third-party offerings, for all banks and Non-Banking Financial Companies (NBFCs).

The proposed framework will address a wide range of issues such as the role and conduct of Direct Sales Agents (DSAs) and Direct Marketing Agents (DMAs), the use of dark patterns, prevention of mis-selling, and responsible business conduct across regulated entities.

In line with the announcement made in the Statement on Developmental and Regulatory Policies dated February 6, 2026, the RBI has issued draft amendment directions to revise existing regulations across multiple categories of institutions. These include commercial banks, small finance banks, payments banks, local area banks, regional rural banks, urban and rural co-operative banks, all-India financial institutions, NBFCs and housing finance companies.

In addition, the central bank has reviewed the regulatory framework governing agency business and referral services offered by regulated entities under the RBI (Undertaking of Financial Services) Directions, 2025. Draft amendment directions have been proposed for various categories of banks and NBFCs to strengthen oversight of such activities.

The RBI has invited comments and feedback from regulated entities, members of the public and other stakeholders on the draft amendment directions by March 4, 2026. Responses can be submitted through the ‘Connect 2 Regulate’ section on the RBI’s website or via email with the subject line specifying feedback on the relevant draft amendment directions.