Mumbai, Feb. 11 -- India's central bank has moved to redraw the boundaries of how banks sell financial products, unveiling sweeping draft rules that target mis-selling, bundled sales and even "dark patterns" in banking apps.

The proposed framework on responsible business conduct released by the Reserve Bank of India (RBI) on Wednesday mandates explicit, recorded consent for every product, bars coercive cross-selling, and requires full refunds with compensation where mis-selling is proven.

Comments on the draft rules have been invited until 4 March. The new regulations will come into effect from 1 July.

The move follows concerns flagged by the RBI in its monetary policy last week, where it said third-party products sold at bank counters...