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LABs: New Definitions in 2026 Amendment to Responsible Business Conduct

Live · in forceNo withdrawal recorded as of 20 Jun 2026. Reviewed by Vikram Jain; always verify against the official RBI source below.
Issued by RBI: 15 Jun 2026  ·  Decoded by BankPulse: 17 Jun 2026, 13:00 IST
⏱ ~1 min read
📄 Official RBI source ↗
Quick answerFrom Jan 1 2027, LABs must adhere to updated RBI directions that introduce key terms—compulsory bundling, dark patterns, DSA/DMA, sub‑agents, explicit consent, and mis‑selling. These definitions tighten marketing and sales conduct, demanding clearer consent, prohibiting coercive bundling, and clarifying agent roles.

What changed

The 2026 amendment inserts six new definitions into the 2025 Responsible Business Conduct directions. It clarifies what constitutes compulsory bundling, dark patterns, and the roles of DSAs/DMA and their sub‑agents. It also defines explicit consent and expands the definition of mis‑selling to cover unsuitable products, misleading information, lack of consent, and forced bundling.

What it means for you

Banks must audit their product‑bundling practices to avoid compulsory bundling. Marketing channels, including third‑party agents, must obtain explicit, documented consent before selling. Any deceptive UI or misleading information now falls under dark patterns and mis‑selling, exposing LABs to regulatory scrutiny.

What you must do

Who it affects

Local Area Banks, DSAs/DMA, Sub‑agents, Customers

When do the new definitions apply?

Effective from January 1, 2027

What is compulsory bundling?

A practice where a customer can avail one product only if another product is also purchased.

How to ensure compliance with explicit consent?

Record a clear affirmative action or documented statement before any sale.

Track this rule
⏳ How this rule evolved — History Map →Full RBI rulebook crosswalk →
AI-drafted · 3-model AI consensus fact-check · under the editorial review of Vikram Jain · decoded & published by BankPulse · 17 Jun 2026, 13:00 IST
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13488&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by Vikram Jain. Independent platform, not affiliated with the Reserve Bank of India; never reproduces RBI text verbatim.