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PM Modi launches 2 new RBI schemes; to make capital markets investor friendly

PM Modi launches 2 new RBI schemes; to make capital markets investor friendly

PM Modi said that the new schemes would unlock India's $1.1 trillion bond market to retail buyers in the government bond sector. 

PM Modi said that the new schemes would unlock India's $1.1 trillion bond market to retail buyers in the government bond sector. During the virtual launch of the scheme PM Modi said that the new schemes would unlock India's $1.1 trillion bond market to retail buyers in the government bond sector. During the virtual launch of the scheme

Prime Minister Narendra Modi on Friday launched two customer-centric schemes of the Reserve Bank of India (RBI)- the RBI Retail Direct Scheme and the Integrated Ombudsman Scheme. 


PM Modi said that the new schemes would unlock India's $1.1 trillion bond market to retail buyers in the government bond sector. During the virtual launch of the scheme, he said that RBI's Retail Direct and the Integrated Ombudsman Scheme would widen the investment horizon for investors and make capital markets more accessible to investors.


A retail investor will access the government securities market through the RBI Retail Direct Scheme. The RBI statement says that it will offer a new avenue to directly invest in securities issued by central and state governments. 


The RBI Retail Direct facility will improve ease of access to retail investors through online access to the government securities market – both primary and secondary. Retail investors (individuals) will have the facility to open and maintain the Retail Direct Gilt Account (RDG Account) with RBI.


RDG Account can be opened through an online portal provided for the scheme which will also give the registered users the following facilities:

Access to primary issuance of Government securities
Access to NDS-OM.

"Investors will be able to open and maintain their government securities account easily online with the RBI, free of cost," the Prime Minister's Office said in a statement.


Further, the RBI Integrated Ombudsman Scheme will help improve the grievance redress mechanism for resolving customer complaints against RBI's regulated entities such as banks, NBFCs and payment service operators regulated by the RBI.


The scheme is based on 'One Nation-One Ombudsman' with one portal, email, and address to lodge customer complaints. The bank customers will be able to file complaints, submit documents, track status, and give feedback through a single email address. There will also be a multi-lingual toll-free number that will provide all relevant information on grievance redress.


To offer ease of operation to handle the customer complaint, a Centralised Receipt and Processing Centre (CRPC) is set up to handle all complaint receipts and initial processing and move towards a 'One Nation – One Jurisdiction' approach.


Ombudsman is an appellate body where customers can escalate complaints if the financial institution fails to address the complaint within 30 days. 


PM Narendra Modi said that the new RBI schemes will directly benefit four crore loan account holders and 220 crore deposit account holders. With the help of technology and smart financial planning, these two schemes will ease the burden of banks. Retail direct and the integrated Ombudsman schemes will offer ease of banking, access and investments for India's 'Aam Nagrik,' PM Modi added.