New Delhi, March 30 -- The Reserve Bank of India (RBI) recently issued draft amendments to its Responsible Business Conduct Regulations. These cover the advertising, marketing and sales of financial products and services by banks, non-bank financial companies and other all-India financial institutions either by their own staff or by direct sales or marketing agents.

The most consequential element in RBI's proposals is that for the first time they define 'mis-selling' to include any sale of a product or service that is neither suitable nor appropriate for a customer profile even with customer consent. Providing incomplete, inaccurate or misleading information, compulsorily bundling products or engaging in dark patterns will also constitut...