RBI orders banks to eliminate dark patterns by July 2026 as survey reveals widespread consumer impact

The Reserve Bank of India (RBI) has mandated that all banks must remove dark patterns—deceptive design tricks in apps and websites—by July 2026, aiming to protect consumers from misleading or manipulative practices.

The announcement follows a nationwide survey by LocalCircles, which received over 161,000 responses from 388 districts, revealing that dark patterns are widespread across online banking platforms. The survey found that most banks deploy 4-7 dark patterns on average, with basket sneaking, forced action, drip pricing, and nagging among the most common.

• Basket sneaking: 57% of users reported hidden charges added during checkout without clear consent.
• Forced action: 51% said they were required to sign up for unrelated services or provide extra personal data.
• Drip pricing: 64% experienced fees that were not disclosed upfront.
• Nagging: 46% faced repeated prompts to activate additional services despite previously declining them.

Other issues included subscription traps, bait & switch, interface interference, and trick questioning, with at least 4 in 10 users affected in each category. Consumers reported difficulties cancelling subscriptions, misleading offers, and confusing prompts while navigating banking apps.

The RBI’s draft “Responsible Business Conduct Amendment Directions, 2026” also prohibits bundling financial products and mandates explicit customer consent for all services. The move comes after LocalCircles had escalated concerns over dark patterns to the RBI in September 2025 and again in January 2026.

“Closing an account is far more complicated than opening one, and opting out of services often feels like navigating a maze,” said a survey respondent. LocalCircles validated the reports using its AI-powered dark pattern detection engine, confirming that the practices are intentional rather than accidental glitches.

The survey demographics included 67% men, 33% women, with 44% from metro cities, 30% from tier 2 towns, and 26% from smaller towns and rural areas. RBI and banks are expected to monitor compliance closely to ensure dark patterns are removed by the July 2026 deadline.

LocalCircles will submit the findings to RBI to guide banks in addressing these issues. With digital banking growing rapidly, the initiative aims to make online financial services transparent, fair, and consumer-friendly.