If you have ever noticed hidden charges appearing at checkout, repeated prompts to buy add-on services, or confusing buttons while using your bank’s app, you are not alone. The Reserve Bank of India (RBI) now wants banks to clean up such practices and make digital banking more transparent.
In its draft ‘Responsible Business Conduct Amendment Directions, 2026’, the RBI has directed banks to remove all “dark patterns,” i.e., design tricks that mislead or pressure customers, from their websites and mobile apps by July 2026. The draft also proposes stricter rules on how banks market financial products and requires clear customer consent before offering any service.
WHAT ARE DARK PATTERNS AND WHY RBI IS CONCERNED
Dark patterns are design techniques used on digital platforms to influence user behaviour in ways they may not fully understand. These can include hidden fees, confusing options, or repeated prompts pushing customers to accept additional services.
The RBI’s move aims to ensure customers are not misled into buying products or paying charges without proper awareness. Banks will also be barred from bundling financial products together without clear approval from the customer.
The aim is to ensure customers know exactly what they are signing up for and are not misled by unclear information.
SURVEY REVEALS WIDESPREAD USE OF SUCH PRACTICES
The RBI’s move follows a nationwide survey conducted by LocalCircles, which gathered more than 161,000 responses from people across 388 districts. The findings showed that such practices are common across many online banking platforms.
Many users said they faced hidden charges that appeared late in the process, while others were asked to sign up for unrelated services or provide extra personal information. A large number also reported fees that were not disclosed clearly at the start. Repeated reminders or prompts encouraging customers to activate additional services were another frequent complaint.
Customers also spoke about difficulties with cancelling subscriptions or closing accounts, saying the process was far more complicated than signing up in the first place. One respondent said opting out of services often felt confusing and time-consuming.
BANKS MUST TAKE CLEAR CONSENT AND STOP BUNDLING PRODUCTS
Under the draft rules, banks will have to get explicit consent before offering any financial product or service. They will also not be allowed to bundle products in a way that pressures customers into accepting services they do not want.
This means customers should clearly know what they are signing up for and what charges apply.
DEADLINE SET FOR JULY 2026
Banks have been given time until July 2026 to fully remove dark patterns and comply with the new rules. The RBI is expected to monitor implementation closely.
With more people relying on mobile banking, the central bank’s move is aimed at making digital financial services simpler, fairer, and easier to trust.
