What changed
The Reserve Bank of India has issued the Second Amendment Directions, 2026, which modify the existing directions on responsible business conduct for Non-Banking Financial Companies (NBFCs), excluding Core Investment Companies, NBFC-Account Aggregators, Non-Operative Financial Holding Companies, and NBFCs not having any customer interface. The new directions cover aspects such as advertising, marketing, and sale of financial products and services, and introduce new definitions for terms like compulsory bundling, dark pattern, explicit consent, and mis-selling.
What it means for you
The updated directions aim to enhance transparency and fairness in the way NBFCs interact with their customers, and prohibit practices like compulsory bundling and dark patterns, which can be misleading or deceptive. The changes are expected to benefit customers by providing them with more clarity and protection when dealing with NBFCs.
What you must do
- Review your advertising and marketing practices to ensure compliance with the new directions
- Train your staff on the updated guidelines and definitions
- Ensure that your customer interactions are transparent and fair
- Review your recovery agent practices to ensure compliance with the updated Code of Conduct for Recovery Agents
Who it affects
NBFCs, Customers of NBFCs, Direct Selling Agents (DSAs) and Direct Marketing Agents (DMAs)
What is the effective date of the new directions?
January 1, 2027
What is compulsory bundling?
The practice of making the availment of one product or service conditional upon the availment of another product or service
What is a dark pattern?
A deceptive design pattern that misleads or tricks users into doing something they did not intend to do