Module: | KYC, NPAs, Advances & Investment Valuations
Q202: Consider the following statements regarding the July 2026 amendments on Mis-selling and Dark Patterns in digital banking:
1. 'Basket Sneaking' is a banned dark pattern involving the secret inclusion of additional items at checkout without explicit user consent.
2. Compulsory bundling, which makes the availment of a core banking product conditional upon purchasing a third-party product, is legally defined as mis-selling.
3. Bank employees and Direct Selling Agents (DSAs) are permitted to make telephonic sales calls up until 19:00 hours by default.
4. If a mis-selling complaint is established, the bank must refund the entire amount paid by the customer and compensate for any resultant loss.
Which of the statements given above is/are correct?
2. Compulsory bundling, which makes the availment of a core banking product conditional upon purchasing a third-party product, is legally defined as mis-selling.
3. Bank employees and Direct Selling Agents (DSAs) are permitted to make telephonic sales calls up until 19:00 hours by default.
4. If a mis-selling complaint is established, the bank must refund the entire amount paid by the customer and compensate for any resultant loss.
Which of the statements given above is/are correct?
✅ Correct Answer: A
The correct answer is A. Statement 1 is correct: The updated framework identifies 'Basket Sneaking' as a deceptive dark pattern that inflates the payable amount by adding extra items at checkout without the customer's active affirmative consent.
Statement 2 is correct: The regulations explicitly define compulsory bundling as a mis-selling practice, ensuring customers are not forced into cross-sales of third-party products to avail core banking services.
Statement 3 is incorrect: The operational guidelines strictly restrict sales calls by bank employees or DSAs/DMAs to between 09:00 hours and 18:00 hours, unlike general loan recovery which extends to 19:00 hours.
Statement 4 is correct: The mandate dictates strict financial remediation, requiring the bank to refund the entire principal or premium paid and strictly compensate the customer for any resultant financial loss.
Statement 2 is correct: The regulations explicitly define compulsory bundling as a mis-selling practice, ensuring customers are not forced into cross-sales of third-party products to avail core banking services.
Statement 3 is incorrect: The operational guidelines strictly restrict sales calls by bank employees or DSAs/DMAs to between 09:00 hours and 18:00 hours, unlike general loan recovery which extends to 19:00 hours.
Statement 4 is correct: The mandate dictates strict financial remediation, requiring the bank to refund the entire principal or premium paid and strictly compensate the customer for any resultant financial loss.