RBI Policy
To issue guidelines on advertising, sale of financial products
This story was originally published at 16:23 IST on 6 February 2026
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MUMBAI – The Reserve Bank of India Friday said it will issue comprehensive instructions to regulated entities on advertising, marketing, and sales of financial products and services in view of the significant consequences of mis-selling of financial products and services. The draft instructions will be issued shortly for public consultation, the RBI said in its statement on developmental and regulatory policies.
"There is a felt need to ensure that third-party products and services that are being sold at the bank counters are suitable to customer needs and are commensurate with the risk appetite of individual clients," the statement said.
The central bank also said it has decided to review the instructions related to the engagement of recovery agents and the conduct aspects of loan recovery. Currently, there are different sets of instructions applicable to different categories of regulated entities regarding the engagement of recovery agents, the central bank said.
"It has now been decided to review and harmonise all the extant conduct-related instructions on engagement of recovery agents and other aspects related to recovery of loans," the RBI said. The draft instructions on this will be issued shortly for public consultation, it said.
The central bank is also reviewing instructions on limiting customer liability for unauthorised electronic banking transactions. In view of the rapid adoption of technology in the banking sector and payments systems, the existing instructions have been reviewed, and revised draft instructions, including a framework for compensation in case of small-value fraudulent transactions, will be issued shortly, the RBI said.
Announcing the monetary policy, RBI Governor Sanjay Malhotra said the framework will include compensation of up to INR 25000 to customers for losses incurred from small-value fraudulent transactions. End
Reported by J. Navya Sruthi
Edited by Saji George Titus
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