Mumbai: The Reserve Bank of India (RBI) will issue comprehensive norms for regulated entities on advertising, marketing, and sales practices to prevent mis-selling of financial products and services.
The central bank said mis-selling has serious consequences for customers as well as for trust and stability in the financial system. The move was outlined in the RBI’s Report on Trend and Progress of Banking in India 2024–25.
The RBI said it also plans to review existing instructions related to conduct issues in loan recovery and the engagement of recovery agents. Guidelines will be issued to ensure fair practices and consistent standards across regulated entities.
Focus on Digital and Cyber Frauds
Addressing the rising threat of digital fraud, the RBI said it continues to work closely with stakeholders, including the Ministry of Home Affairs, to develop and operationalise measures to curb cyber-enabled fraud. Regulated entities have been advised to strengthen internal controls, appoint adequate grievance redress officers at all levels, and enhance digital financial literacy among customers.
The central bank said these steps are essential to improve customer protection in an increasingly digital banking environment.
AI-Based Tools for Fraud Detection
The RBI highlighted recent technology-driven initiatives to combat fraud. One such tool, MuleHunter.ai, has been developed to enable system-wide learning for identifying and flagging potential mule accounts. As of December 17, 2025, the system has been implemented in 23 banks.
Another key initiative is the Digital Payments Intelligence Platform, which uses artificial intelligence to flag risky transactions and share intelligence for fraud detection and prevention across the ecosystem.
Regulatory Priorities Going Forward
The central bank said its regulatory and supervisory approach remains focused on cybersecurity, fraud mitigation, customer protection, climate risk awareness, and financial stability. Balancing innovation with stability, strengthening public trust, and supporting sustainable development will continue to guide RBI policies in the coming years
