PM Modi launches RBI’s Retail Direct Scheme, Integrated Ombudsmen Schemes – Know Key Facts, Significance

Prime Minister Narendra Modi on November 12, 2021, launched two innovative, customer-centric initiatives of the Reserve Bank of India (RBI) namely the RBI Retail Direct Scheme and the Reserve Bank - Integrated Ombudsman Scheme. These two schemes will ease access to the government securities market for retail investors. Union Finance Minister Nirmala Sitharaman and RBI Governor Shaktikanta Das were present during the virtual launch.

Significance

The Reserve Bank of India (RBI) has been leveraging innovation and technology for enhancing the efficiency of its services. The developmental role of the RBI is focused on undertaking people-centric initiatives and further deepening financial inclusion.

Both, the RBI Retail Direct Scheme and the Reserve Bank – Integrated Ombudsman Scheme launched on November 12 will aid in expanding the scope of investment in India while making access to capital markets easier and more secure.

Also read: PM Narendra Modi to launch two RBI initiatives on November 12

WATCH: PM Modi speaking at launch of two customer-centric initiatives of RBI

Speaking at the launch of two customer centric initiatives of RBI. https://t.co/Xt4HGfz1Ut

— Narendra Modi (@narendramodi) November 12, 2021

What is RBI Retail Direct Scheme?

The RBI Retail Direct Scheme aims to enhance access to the government securities market for retail investors. The scheme provides new avenues for directly investing in securities issued by the Central and State government. With the RBI Retail Direct Scheme, retail investors in India will be able to easily open and maintain their Government Securities (G-Sec) account online with the RBI for free of cost.

The RBI Retail Direct Scheme will offer the inclusion of everyone in the economy as the scheme will bring the middle class, senior citizens, small businessmen, and employees directly and securely in government securities.

Government Securities (G-Sec) are considered to be the safest asset class. The idea was floated by the RBI during the monetary policy in February 2021. In July 2021, the Central Bank announced that investors will be able to access bidding in primary auctions as well as the trading platform for government securities (G-Sec) called Negotiated Dealing System-Order Matching Segment (NDS-OM).

What is Reserve Bank - Integrated Ombudsman Scheme?

The central theme of the Reserve Bank – Integrated Ombudsman Scheme is based on ‘One Nation-One Ombudsman’ with one portal, one email, and one address for the customers to lodge their complaints. The Reserve Bank – Integrated Ombudsman Scheme aims at improving the grievance redress mechanism for resolving customer complaints against entities regulated by the RBI.

The Reserve Bank – Integrated Ombudsman Scheme will offer a single point of reference for customers to lodge their complaints, track status, submit documents and provide feedback. The scheme will provide a multi-lingual toll-free number through which customers can seek all relevant information on grievance redressal and filing complaints.

Currently, India has three separate Ombudsmen for banks, non-banking finance companies (NBFCs), and non-bank prepaid payment issuers (PPIs) commonly known as wallets. The RBI operates these three Ombudsmen through 22 Ombudsmen offices across India. With the launch, all of the Ombudsmen will be integrated into one centralized system. The Scheme will remove any jurisdiction limits while filing complaints.

However, the complaints that are not covered under the Ombudsmen Scheme will be addressed by the Customer Education and Protection Cells (CEPCs) located across 30 regional offices of RBI.