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RBI bans compulsory bundling and dark patterns in bank product sales from January 2027

RBI's Commercial Banks Responsible Business Conduct Second Amendment Directions, 2026 ban compulsory bundling and dark patterns from 1 January 2027.

Updated

What changed

The Reserve Bank issued the Reserve Bank of India (Commercial Banks – Responsible Business Conduct) Second Amendment Directions, 2026 (RBI/2026-27/115) on 15 June 2026, effective 1 January 2027.

Clause 85V: "A bank shall not resort to compulsory bundling of any TPPS with any of its own product / service." Where the bank's own product is contingent on a third-party product as a risk mitigant, "the customer shall be provided the option to purchase the same from any TPPS Provider". A package taken on voluntary consent is not compulsory bundling.

A dark pattern is defined as design "designed to mislead or trick users to do something they originally did not intend or want to do"; clause 85X subjects user interfaces to "user testing and periodic internal audit".

Consent must be explicit — a signed declaration, OTP approval or digitally recorded confirmation — and on digital interfaces "the default choice … shall be 'No' / 'I do not agree'". Where mis-selling is established the bank "shall refund the entire amount paid by the customer" and compensate for loss under its approved policy, on a complaint within 30 days of receiving the signed agreement.

RBI's 11 February 2026 drafts had proposed a 1 July 2026 start.

Who is affected

Commercial banks other than Small Finance Banks, Payments Banks, Regional Rural Banks and Local Area Banks — the scope the directions name; Small Finance Banks got parallel directions the same day (RBI/2026-27/116). Nothing changes before 1 January 2027: pre-ticked add-ons and insurance attached at the point of sale stay legal until then.

What to do

Until then the burden is yours: decide on published terms, not the application flow. HDFC Bank Infinia charges ₹12,500 a year and waives renewal at ₹10 lakh of spend — ₹83,333 a month. Axis Bank Magnus charges the same ₹12,500 but waives at ₹25 lakh, or ₹2,08,333 a month: two and a half times the spend for the same relief. Both verified 11 June 2026; HDFC Infinia vs Axis Magnus and our methodology show the working.

Know the fee before the add-ons: our credit card fees in India, explained guide lists every charge an Indian card can levy, and the annual fee waiver guide covers spend conditions. A bundled product is easiest to refuse when you know what the card costs without it.

Sources

We link the reporting we relied on. Always confirm the change against the issuer’s own most-important-terms document before acting on it.