Finance

The Reserve Bank of India (RBI) has finalized a comprehensive framework aimed at strengthening consumer protection in the banking sector by introducing stricter rules against the mis-selling of financial products, including the potential future introduction of polymer banknotes India. According to the central bank’s directions and multiple media reports, the new framework is designed to ensure that banks and other regulated entities follow more transparent and responsible sales practices while offering loans, insurance, investment products and other financial services.

As per the RBI’s finalized directions issued on June 15, 2026, the new norms are scheduled to come into effect from January 1, 2027, giving regulated entities several months to align their systems, employee training and customer-facing processes with the revised requirements.

According to Reuters, one of the most significant changes under the framework is that customers who are found to have been mis-sold a financial product would be entitled to a full refund of the amount paid, similar to the ITR due dates that taxpayers must be aware of. The directions further state that banks would also be required to compensate customers for financial losses arising from such mis-selling, subject to the provisions laid down in the framework.