RBI’s customer-centric initiatives

In News

• Prime Minister launched two customer-centric initiatives of the Reserve Bank of India (RBI)
  • The RBI Retail Direct Scheme and
  • The Reserve Bank – Integrated Ombudsman Scheme. 

About

• February 2021: RBI made the proposal to allow retail investors to open gilt accounts to invest in G-secs directly.
• Retail Investors: An individual or non-professional investor who buys and sells securities through brokerage firms or savings accounts.

RBI Retail Direct Scheme

• It is aimed at enhancing access to the government securities market for retail investors. 
  • This scheme offers a new avenue for directly investing in government 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.

Significance of RBI Retail Direct Scheme

• Improved Ease of Access:
  • Will make the process of G-sec trading smoother for small investors.
  • Small investors in the country will get a safe medium of investment in government securities.
  • Raising retail participation in G-secs and will improve ease of access.
• Facilitate Borrowings:
  • The scheme will facilitate the smooth completion of the government borrowing programme in 2021-22.
  • Government can raise more money from the Domestic market itself.
• Financialise Domestic Savings:
  • The scheme will promote the financialisation of a vast pool of domestic savings and could be a game-changer in India’s investment market.
  • It may also reduce the government External Borrowings which are generally accompanied by currency fluctuation risks.

RBI Integrated Ombudsman Scheme

• This will help in improving the grievance redress mechanism for resolving customer complaints against RBI’s regulated entities. 
• It will do away with the jurisdictional limitations as well as limited grounds for complaints. 
• The scheme is based on ‘One Nation-One Ombudsman’ with one portal, one email, and one address for the customers to lodge their complaints.
  • The bank customers will be able to file complaints, submit documents, track status, and give feedback through a single email address. 
  • The mechanism will cater to all the customers from banks, NBFCs and the non-bank issuers of prepaid payment instruments.
• There will also be a multilingual toll-free number that will provide all relevant information on grievance redress.
• The complaints that are not covered under the ombudsman scheme will continue to be attended to by 
  • The Customer Education and Protection Cells (CEPCs) are located in the 30 regional offices of RBI.

Significance of RBI Integrated Ombudsman Scheme

• Uniformity and streamlined user-friendly mechanism:
  • The single national-level integrated digital portal for the RBI ombudsman scheme.
  • It will add value to the scheme and bring customer delight and financial inclusion.
• Consumer Friendly:
  • There will be a single point of reference for customers to file their complaints, submit the documents, track status, and provide feedback.  
  • The multilingual toll-free number will provide all relevant information on grievance redress and assistance for filing complaints. 
  • The redressal will continue to be cost-free for customers of banks and members of the public.

Way Forward and Conclusion

• Access to the Capital:
  • RBI’s two innovative customer-centric initiatives will increase investment avenues, make accessing the capital market easier, safer.
• Safer Investments:
  • The schemes while expanding the scope of investment will also make access to capital markets easier and more secure for investors.
• Technology: 
  • RBI has been leveraging technology & innovation for enhancing the efficiency of its services. 
  • RBI’s developmental role is focused on further deepening financial inclusion and undertaking people-centric initiatives

 Source: LM