New Delhi, June 16 -- The Reserve Bank of India (RBI) on Monday issued stricter norms to prevent banks and other financial institutions from mis-selling financial product. The revised rules, which will come into effect from January 1, 2027

Under the new norms, banks cannot design incentive structures that encourage employees or agents to aggressively sell products.

The revised rules also applies to social media influencers and digital marketing partners hired by banks and financial institutions.

"While payment of incentives to REs' (regulated entities) employees by third parties has been prohibited, the directions do not prohibit payment of incentives by REs to their employees," the central bank said. Rather, the objective of the provi...