Do You Know About The 2 RBI Schemes PM Modi Launched Today?
PM said the two schemes broaden the horizon of investment in the country and access to capital markets also becomes easier and safer.
Prime Minister Narendra Modi, on Friday, at a virtual event launched two customer-centric initiatives of the Reserve Bank of India (RBI)- the RBI Retail Direct Scheme and the Reserve Bank - Integrated Ombudsman Scheme.
RBI Governor Shaktikanta Das, Finance Minister Nirmala Sitharaman also marked their presence during the virtual meet launch.
According to the Prime Minister, the two schemes broaden the horizon of investment in the country and access to capital markets also becomes easier and safer.
The RBI Retail Direct scheme is a step towards inclusivity, as with this, the doors for the government bond market will be open for retail investors.
“Retail Direct Scheme will give strength to the inclusion of everyone in the economy as it will bring in the middle class, employees, small businessmen and senior citizens with their small savings directly and securely in government securities,” PM said.
"RBI has been leveraging technology & innovation for enhancing the efficiency of its services. RBI's developmental role is focused on further deepening of financial inclusion and undertaking people-centric initiatives", Das said during the event.
RBI- Retail Direct Scheme
This scheme aims to enable a retail investor to access the government securities market. This scheme provides a new path to investors for directly investing in securities issued by both Centre and state governments.
"Investors will be able to easily open and maintain their government securities account online with the RBI, free of cost," the Prime Minister's Office said in a statement.
The portal for the trading of government securities can be accessed at rbiretaildirect.org.in.
In a circular dated July 12, 2021, the Reserve Bank of India had mentioned that retail investors will not be required to pay a penny for opening and maintaining their government securities account. But, Fee for payment gateway etc., as applicable, will have to be borne by the registered investor. It had added that investors would need to open and maintain the ‘Retail Direct Gilt Account’ (RDG Account) with RBI.
As per the circular, a retail investor can register with the scheme and maintain an RDG account, only if they have the following:
i) Rupee savings bank account maintained in India;
ii) Permanent Account Number (PAN) issued by the Income Tax Department;
iii) Any OVD for KYC purpose;
iv) Valid email id; and
v) Registered mobile number.
Non-Resident retail investors are also eligible to invest in Government Securities under Foreign Exchange Management Act, 1999. Further, the RDG account can be opened singly or jointly with another retail investor who meets the eligibility criteria.
How To Open An RDG Account?
If an investor meets the eligibility criteria, s/he needs to fill the online form and authenticate it using the OTP sent to the registered phone number and e-mail address before submitting. Payment may be made from the linked bank account via net banking/UPI. Upon successful submission of the form, details for accessing the online portal will be conveyed through SMS/e-mail. RDG Account shall be available for primary market participation as well as secondary market transactions on NDS-OM. NDS-OM is RBI’s screen-based, anonymous electronic order matching system for buying and selling Government securities in the secondary market.
Reserve Bank- Integrated Ombudsman Scheme
This initiative aims to simplify the grievance redress mechanism for settling customer complaints against RBI's regulated entities.
In February this year, RBI Governor Shaktikanta Das remark, “To make the alternate dispute redressal mechanism simpler and more responsive to the customers of regulated entities, it has been decided to implement, inter alia, integration of the three Ombudsman schemes and adoption of the ‘One Nation One Ombudsman’ approach for grievance redressal.”
It will eliminate jurisdictional limitations, and also broaden the scope for grounds for complaints. Now, customers will have a single point of reference with RBI to submit documents, track complaint status, and offer feedback. Customer Education and Protection Cells (CEPCs), which are situated in each of RBI's 30 regional offices, will continue to handle complaints that do not come under the ambit of the ombudsman programme.