More Power to You: New Rules on Mis-Selling
Starting July 1, the Reserve Bank of India (RBI) is rolling out a powerful new framework to protect you from being mis-sold financial products. Banks will now be required to obtain your explicit consent before selling you any product. The use of confusing
website designs, or 'dark patterns', to trick you into buying something is banned. Most importantly, if a bank is found to have mis-sold you a product, you are now entitled to a full refund and compensation for any losses. This change aims to bring greater transparency and accountability, ensuring that the financial products you are offered are genuinely suitable for your needs.
Loan Recovery Gets More Civilised
Dealing with debt recovery can be stressful, but new RBI guidelines effective July 1 aim to make the process more humane and respectful. Recovery agents can now only contact borrowers between the hours of 8:00 AM and 7:00 PM. Calls or visits outside this window are a violation of the Fair Practices Code. Furthermore, banks are now held directly responsible for the conduct of their recovery agents under a 'Vicarious Liability' rule. This means if an agent harasses you, the bank itself can be penalised. Agents must also present a bank-issued ID card and an official authorisation letter during any interaction, giving you a clear way to verify their credentials.
Your Credit Card Perks Are Changing
If you are an HDFC Bank or SBI Card holder, you will want to pay close attention to your card's benefits this month. HDFC Bank has revised its criteria for complimentary domestic airport lounge access. Starting July 1, you must spend at least ₹60,000 in the preceding quarter to qualify for the benefit in the current quarter. Meanwhile, SBI Card is updating the reward point structure for its co-branded PhonePe cards, specifically the PURPLE and SELECT BLACK variants. The changes, which take effect July 1, include new caps on how many reward points you can earn on certain spending categories. Cardholders should review the specific terms to understand how their rewards accumulation will be affected.
Better Safeguards Against Digital Fraud
In a move to bolster confidence in digital payments, the RBI has proposed a new framework to help victims of online fraud, which is slated to be effective from July 1. The new rules focus on protecting customers using channels like UPI, internet banking, and credit or debit cards. A key proposal includes a compensation mechanism for small-value digital frauds. If you suffer a loss of up to ₹50,000 from a genuine fraudulent transaction, you could be eligible for compensation of up to ₹25,000, provided you report the incident promptly. This one-time lifetime compensation aims to provide a safety net for small-scale fraud victims.
Airtel Payments Bank Adjusts Fees
Customers of Airtel Payments Bank will notice a change in their fee structure from July 1. The bank is introducing an Account Maintenance Charge (AMC) for certain customers. For those onboarded up to April 30, 2026, an AMC of ₹99 plus 18% GST will be levied quarterly. However, this charge is reduced to ₹49 plus GST for accounts that have received Direct Benefit Transfer (DBT) credits within the last six months. This change consolidates previous charges into a single AMC, and customers are advised to check their account details to see how this applies to them.
Behind the Scenes: A More Stable Market
While not a direct change for most retail customers, a significant RBI rule taking effect on July 1 aims to make the financial system more stable. The central bank has tightened rules on how banks can lend money to stock and commodity brokers for proprietary trading, which is when firms trade with their own capital. The new regulations demand 100% collateral for such loans, with a significant 'haircut' on the value of shares pledged as collateral. The goal is to reduce excessive speculation in the markets and protect depositors' funds. While this may temporarily reduce liquidity in the stock market, the long-term objective is to build a safer and more resilient banking sector.
