RBI Retail Direct Scheme & Integrated Ombudsman Scheme launched for govt securities market

The schemes will give retail investors direct access to the government securities market and an improved grievance redressal mechanism

November 12, 2021

Investors can purchase securities and maintain them online for free with the RBI under the Retail Direct Scheme.

Integrated Ombudsman Scheme will allow the Central Bank power to address any complaints made against entities.

Financial inclusion in terms of banking and investment in government securities will be facilitated through the schemes.

Launch of the schemes is the culmination of a seven-year long effort to reform the BFSI sector and strengthen public trust.

Prime Minister Narendra Modi launched the RBI Retail Direct Scheme and the Reserve Bank-Integrated Ombudsman Scheme (RB-IOS) to streamline the government securities market for retail investors. The RBI Retail Direct Scheme will allow retail investors to directly access government securities and retain them online with the RBI for free. The Reserve Bank-Integrated Ombudsman Scheme (RB-IOS) will help to make the grievance redressal process more methodical through the “One Nation-One Ombudsman” approach. Through this mechanism, all complaints made against entities will be effectively addressed by the RBI itself. The ambit of financial inclusion and digitization in the BFSI space will be effectively expanded through the two schemes. The volume of investment inflow as well as the implementation of effective governance practices within the banking and securities ecosystem are also expected to be improved.

Prime Minister Modi recounted the seven year effort taken to reform public sector banking, recognize non-performing assets, restructure the BFSI ecosystem and improve public faith in the banking infrastructure. The Prime Minister also remarked on the increasing accessibility of banking across the rural-urban, socio-economic, gender and caste divides. He concluded by saying that the RBI Retail Direct Scheme will channelize the contributions of every participant in the economy into the government securities market.