Prime Minister Narendra Modi launched two consumer-centric initiatives of the Reserve Bank of India (RBI) on Friday via videoconferencing. The two initiatives are the RBI Retail Direct Scheme and the Reserve Bank Integrated Ombudsman Scheme.

Finance Minister Nirmala Sitharaman and RBI Governor Shaktikanta Das were also part of the virtual launch event.

PM Modi said the two schemes launched today will expand the scope of investment in the country and make access to capital markets easier and more secure for investors. “In the last 7 years, NPAs (non-performing assets) were recognized with transparency. The focus has been on resolution; multiple reforms were carried out in the financial system and public sector banks,” he added.

During the launch event, Shaktikanta Das said, “RBI has been leveraging technology and innovation to enhance the efficiency of its services. RBI’s developmental role is focused on further deepening of financial inclusion and undertaking people-centric initiatives.

WHAT IS THE RBI RETAIL DIRECT SCHEME?

The RBI Retail Direct Scheme will allow retail investors to invest easily in government securities.Investors will be able to directly invest in government securities. According to RBI, the scheme will allow retail investors to open and maintain their government securities account free of cost.

The initiative was first mentioned by the RBI governor in February 2021. He called the scheme a major structural reform. The central bank said investors would have to open and maintain the Retails Direct Gilt Account or RGD with the RBI for investments in government securities.

Individuals can open the RDG account by filling a form online and using the OTP received on the registered mobile and e-mail ID to authenticate and submit the form. The payment for the same can be made through net banking or UPI facility from the linked bank account.

It may be noted that government securities are debt issuances by the government and they are beneficial for investors as they offer guaranteed returns.These securities are deemed safe investments and offer promised returns to investors at the time of maturity. However, the return on investment is usually lower than other riskier investments.

RBI – INTEGRATED OMBUDSMAN SCHEME

This was the second initiative launched by the prime minister today. The RBI Integrated Ombudsman Scheme aims to further improve the grievance redress mechanism for resolving customer complaints against entities regulated by the central bank.

It may be noted that PMO said the theme of the scheme is based on “One Nation-One Ombudsman” with one portal, one email address for the customers to lodge their complaints.

This essentially means there will be a single point of reference for customers to file complaints against entities, submit documents, track the status of their complaints and provide feedback.