RBI Deputy Governor Issues Warning on “Dark Patterns” in Digital Loan Misselling

In a recent alert, RBI Deputy Governor M Rajeshwar Rao warned of ‘dark patterns’ in the mis-selling of digital loans, signalling deceptive design interfaces and tactics that mislead users into high-cost, short-term consumer credit. Rao urged banks to bolster security against rising technology-induced frauds, encompassing fraudulent apps, privacy breaches, and deepfakes. Rao acknowledged fintech innovations’ positives but called for revamped regulations to ensure financial stability and customer protection. This caution comes amid the persistent threat of cyber fraud and data breaches in the technology-driven banking landscape.