Banks · Reserve Bank of India

Rules on bank sales agents and mis-selling from 1 January 2027 Sales agent and mis-selling rules

From 1 January 2027, banks must control how their direct selling agents sell, take your explicit consent for every product, stop making loans conditional on other products, and refund you if a product was mis-sold.

Last updated on 5 November 2026

Status: Announced, not open yet
Run by: Reserve Bank of India

Official website (external site)

What you get

Agents must carry clear identification, must not pretend to be bank staff and must not mislead or pressure you
Agents may contact you only between 9 am and 7 pm unless you ask otherwise, and may not visit your home or office without your explicit consent
Agents must tell you their fees up front, and the bank must publish an up to date list of its direct selling and marketing agents
Every product needs your explicit consent, and the default choice on a form must be No
A bank cannot make a loan conditional on buying another product. Where cover such as insurance is needed to protect a loan, you can buy it from any provider
Add-ons such as loan protection insurance cannot be ticked for you by default in the loan application
If mis-selling is established, the bank must refund the full amount you paid for the product and compensate your loss under its policy
Where no other time limit applies, you can complain about mis-selling within 30 days of getting the signed terms

Who can apply

Takes effect on 1 January 2027
RBI/2026-27/115 covers commercial banks other than small finance, payments, regional rural and local area banks
Matching directions of the same date, RBI/2026-27/116 to 123, cover small finance banks, payments banks, local area banks, regional rural banks, urban and rural co-operative banks, all India financial institutions and NBFCs

How to apply

Ask any agent who approaches you for identification and check them against the bank's published list
Do not sign up for insurance or other products you did not ask for with a loan
If a product was mis-sold, complain to the bank in writing within 30 days of receiving the signed terms
If the bank does not resolve it, complain to the RBI Ombudsman at cms.rbi.org.in

In Kerala, Will apply to every bank, co-operative bank and NBFC in Kerala, each under its own matching direction.

Worth knowing

Issued on 15 June 2026, takes effect on 1 January 2027

Where we found this

An independent guide by The Company of Four, not a government website. Schemes change often, so check every detail on the official website before you apply. Links marked ↗ open external websites that we do not run, and we are not responsible for their content. Seen something out of date? Tell us and we will look into it.