India, Feb. 13 -- After several regular warnings, lots of screaming, shouting, raving, and ranting, the Reserve Bank of India (RBI) took its first concrete step to stop mis-selling, bundling, and other questionable practices by the banks. It issued several drafts for different kinds of banks for feedback. The idea is to stop "compulsory bundling" of products, like insurance with loans, get rid of "dark patterns" (mislead borrowers to take decisions that are unintended), and other common practices such as false urgency, basket sneaking (hike payments for unwanted things), "confirm shaming" (create sense of fear), and "forced action."

On an overall basis, mis-selling is clearly defined in the draft. Of course, bundling, which is the most c...