RBI puts curbs on banks' sale of third-party

The RBI issued final norms prohibiting banks from compulsorily bundling third-party products or services with their own offerings, giving customers the freedom to purchase from any provider of their choice. The rules, effective from January 1, 2027, are aimed at preventing mis-selling and aggressive sales practices by curbing improper incentive structures. The RBI also clarified that social media influencers and digital marketing intermediaries engaged for promotion will be classified as direct selling agents (DSA) or direct marketing agents (DMA).