RBI bars banks forcing bundled loan products starting Jan 2027
The Reserve Bank of India (RBI) is rolling out fresh rules to stop banks from pushing unwanted products, like insurance, with your loans.
Starting January 1, 2027, banks can't force you to buy extra stuff bundled with your loan, making things a lot fairer for customers.
Banks must obtain explicit customer consent
Banks now need your clear consent before selling any third-party products (think signed forms, OTPs, or recorded calls).
If they mess up and mis-sell something, they'll have to refund your money and cover any losses.
Staff won't get rewards for selling things you don't need, and banks must check if a product actually suits you based on your age, income, and risk appetite.
Plus, telemarketing calls will be limited and aggressive sales tactics are out, so fewer spammy calls in the future.