Relief for Banking Customers! RBI Orders Banks To Remove ‘Dark Patterns’ From Apps; No More Hidden Charges
Relief for Banking Customers! RBI Orders Banks To Remove ‘Dark Patterns’ From Apps; No More Hidden Charges
Draft 2026 directions mandate clear consent, ban bundling of financial products
In a major relief for crores of banking customers, the Reserve Bank of India (RBI) has directed banks to remove misleading design tricks — commonly known as “dark patterns” — from their websites and mobile applications.
Under the draft ‘Responsible Business Conduct Amendment Directions, 2026’, banks have been instructed to eliminate such practices by July 2026.
The move aims to make digital banking more transparent and prevent customers from being unknowingly charged or pushed into buying unwanted financial products.
Dark patterns refer to design techniques used on digital platforms to influence user behaviour without full clarity. These include hidden charges that appear at checkout, confusing buttons, repeated prompts to purchase add-on services, pre-ticked options, and complicated cancellation processes.
Many customers have reported seeing extra charges only at the final payment stage or receiving repeated notifications encouraging them to activate additional services. In some cases, opting out of services or cancelling subscriptions has been far more complicated than signing up.
The RBI’s draft directions clearly state that banks must remove all such misleading elements from their digital platforms. Customers should receive proper and complete information before agreeing to any service. No financial product can be sold or activated without explicit consent.
Importantly, banks will not be allowed to bundle products together in a way that pressures customers into accepting services they do not want. Every product or add-on must be offered separately with clear approval from the customer.
The central bank’s action follows findings from a nationwide survey conducted by LocalCircles, which collected over 1.61 lakh responses from 388 districts. The survey indicated widespread use of confusing practices across online banking platforms, including unclear disclosure of fees and unnecessary requests for personal information.
With the new draft rules, banks will have to redesign parts of their apps and websites to ensure transparency. The RBI’s objective is to ensure that customers know exactly what they are signing up for and what charges apply.
The draft has been released for public feedback, and final guidelines are expected to be notified after consultation. Once implemented, the changes are expected to significantly reduce misleading practices and protect customers from unexpected financial losses.
