On Friday, Prime Minister Narendra Modi used videoconferencing to inaugurate two Reserve Bank of India (RBI) consumer-centric programs. The RBI Retail Direct Scheme and the Reserve Bank Integrated Ombudsman Scheme are the two projects.
The virtual launch event also included Finance Minister Nirmala Sitharaman and RBI Governor Shaktikanta Das.
What did the PM claim?
PM Modi stated that the two programs announced today will broaden the scope of investment in programs and make investors’ access to capital markets easier and safer. “In the previous seven years, non-performing assets (NPAs) have been acknowledged transparently. “The focus has been on resolution; many changes in the financial system and public sector institutions have been implemented,” he continued.
What is RBI into?
“RBI has been utilizing technology and innovation to increase the efficiency of its services,” Shaktikanta Das remarked at the inaugural ceremony. The RBI’s development function focuses on advancing financial inclusion and implementing people-centered initiatives.
Will the investors be able to purchase shares?
Investors will be able to purchase government securities directly. The initiative, according to the RBI, would allow individual investors to create and manage government securities accounts for free.
The governor of the Reserve Bank of India initially suggested the proposal in February 2021. He referred to the plan as a “major structural transformation.” Investors would need to create and maintain a Retails Direct Gilt Account (RGD) with the RBI to invest in government securities, according to the central bank.
Individuals can establish an RDG account by filling out an online form and authenticating and submitting the form using the OTP obtained on their registered cellphone and e-mail ID. Payment for the same can be done from the associated bank account via online banking or UPI.
Integrated ombudsman scheme (RBI)
This was the prime minister’s second initiative of the day. The RBI Integrated Ombudsman Scheme intends to strengthen the grievance resolution procedure for customers who have complaints against the central bank’s regulated firms.