Retail investors to get direct access to participate in the Govt Securities market : RBI Governor

Biznextindia : With a view to encourage retail investment in government securities, the Reserve Bank of India (RBI) has proposed to provide retail investors with online access to the government securities market – both primary and secondary – directly through the Reserve Bank (Retail-direct).

The announcement has been made by RBI Governor Shaktikanta Das during his speech on the bi-monthly monetary policy review earlier today.

“This will broaden the investor base and provide retail investors with enhanced access to participate in the government securities market. This is a major structural reform placing india among select few countries which have similar facilities. This measure together with HTM relaxation, will facilitate smooth completion of the Government borrowing programme in 2021-22” he said.

Centralized customer helpline for digital payments

The RBI Governor has announced that major payment system operators in the country would be required to facilitate setting-up of a centralised industrywide 24×7 helpline for addressing customer queries in respect of various digital payment products and give information on available grievance redress mechanisms.

“Going forward, the facility of redress of customer grievances through the helpline shall be considered. This is envisaged to enhance consumer trust and confidence in the digital payments ecosystem” said the RBI Governor.

Foreign Portfolio Investors (FPIs) Investment in Defaulted Bonds

Meanwhile, RBI has announced that investment by Foreign Portfolio Investors (FPIs) in defaulted corporate bonds will be exempted from the short-term limit and the minimum residual maturity requirement under the Medium-Term Framework. The decision is expected to promote investment by foreign portfolio investors (FPI) in corporate bonds, FPI investment.