RBI Bans Forced Sale of Banks; New Rules to Apply After 2027

The Reserve Bank of India on 15 June 2026 issued new rules for commercial banks, which will come into effect after 1 January 2027. These rules prohibit banks from forcing customers into unnecessarily expensive insurance policies and from compelling them to take loans under pressure.

If customers were given expensive insurance while taking a home loan or personal loan, or were caught up in enticing advertisements the moment they opened a mobile app, they will now receive protection. The RBI will apply these rules to all commercial banks, while separate guidelines will be issued for payments banks and regional rural banks.