17/06/2026
How long does it take to change public policy in India?
Sometimes, 13 years.
Last week, the Reserve Bank of India (RBI) issued a comprehensive framework to curb mis-selling by banks. The new rules prohibit forced bundling of products, dark patterns, unsuitable recommendations and aggressive sales practices. Banks will now be required to obtain explicit customer consent and strengthen safeguards for customers.
For us at Moneylife, this development brings back memories of a campaign that began in 2013.
It started with a remarkable man named Mangelal Sharma.
At the age of 79, Mr Sharma discovered that money he believed was safely invested had instead been placed in a mutual fund that was unsuitable for his needs. Like countless other customers, he trusted his bank. When his complaints failed to get a satisfactory response, he decided to fight back.
Armed with little more than determination and a T-shirt warning other customers about mis-selling, Mr Sharma launched a one-man protest outside a bank branch.
Moneylife highlighted his story.
Soon afterwards, he got his money back.
But the issue was much larger than one customer and one bank.
His case exposed a deeper problemтАФthe growing pressure on banks to cross-sell financial products and the resulting mis-selling of investments, insurance policies and other products to unsuspecting customers, including senior citizens.
In April 2013, Moneylife Foundation submitted a memorandum to the RBI Governor on behalf of more than 21,500 members, urging the regulator to take stronger action against mis-selling by banks.
The issue gradually gained recognition.
Later that year, RBI Deputy Governor Dr KC Chakrabarty publicly stated that banks should not be selling third-party products. RBI subsequently acknowledged concerns around mis-selling and began reviewing its framework.
Yet meaningful reform remained slow.
Over the following decade, Moneylife continued to document cases involving:
тАв Insurance mis-selling
тАв Wealth-management abuses
тАв Toxic portfolio churning
тАв Relationship-manager misconduct
тАв Aggressive sales targets and cross-selling
тАв Senior citizens being persuaded to buy unsuitable products
Many of these stories highlighted the same underlying issue: customers trusted their banks, but sales incentives often overrode suitability and customer interest.
Now, thirteen years after Mangelal Sharma's protest, RBI has introduced a framework that seeks to address many of the concerns consumer activists and affected customers have been raising for years.
Count the years. 2013 тЖТ 2026 Thirteen years.
That is what activism looks like. Not one article. Not one complaint. Not one social media campaign. Persistent reporting. Evidence-based advocacy. Citizen action.
And the patience to keep pushing for change. Key milestones in the journey:
ЁЯУН April 2013 тАУ Mangelal Sharma launches a one-man protest against mis-selling
ЁЯУН April 2013 тАУ Moneylife Foundation submits a memorandum to RBI on behalf of 21,500+ members
ЁЯУН 2013 тАУ RBI Deputy Governor Dr KC Chakrabarty publicly raises concerns about banks selling third-party products
ЁЯУН 2013 onwards тАУ RBI acknowledges concerns and begins reviewing guidelines
ЁЯУН 2013тАУ2025 тАУ Moneylife continues reporting on mis-selling and abusive sales practices
ЁЯУН June 2026 тАУ RBI issues a comprehensive framework against mis-selling
Read the latest RBI story:
https://www.moneylife.in/article/rbi-cracks-down-on-misselling-banks-barred-from-forced-bundling-dark-patterns-and-aggressive-sales-tactics/80785/129290.html
Read about Mangelal Sharma's protest:
https://www.moneylife.in/article/will-this-79year-olds-protest-move-the-government-and-the-rbi-to-stop-misselling-by-banks/32191.html
Read about his victory:
https://www.moneylife.in/article/mangelal-sharma-gets-his-rs7-lakh-backanother-moneylife-victory/32252.html
Read the Moneylife Foundation memorandum:
https://www.mlfoundation.in/memorandum/memorandum-to-rbi-on-misselling-by-banks/15.html
Sucheta Dalal Debashis Basu Yogesh Sapkale fans
RBI has issued stringent new rules banning bank mis-selling, forced bundling, dark patterns and aggressive sales practices. Banks must obtain explicit customer consent, assess product suitability, compensate victims of mis-selling and provide refunds. The new framework strengthens consumer protectio...
