The Reserve Bank of India (RBI) on Wednesday left the key repo rate unchanged at 5.5%, as the Monetary Policy Committee (MPC) wrapped up its three-day meeting headed by Governor Sanjay Malhotra. The central bank also decided to stick with its neutral stance, suggesting that interest rates may remain steady for now.
Alongside its rate decision, the RBI also rolled out several developmental steps aimed at making banking smoother for customers and boosting retail participation in government bonds.
STANDARDISATION OF CLAIM SETTLEMENT FOR DECEASED ACCOUNT HOLDERS
Currently, banks follow different procedures when settling claims for deposit accounts or lockers after a customer’s death, causing confusion and delays for family members. To improve customer service and reduce hardship, the RBI plans to introduce a uniform process across all banks.
This includes standard documentation and streamlined procedures for nominees, legal heirs, or survivors to access funds or retrieve items from lockers. A draft circular will soon be released for public feedback, aiming to make the process simpler and more consistent nationwide.
NEW AUTO-BIDDING FEATURE IN RBI RETAIL DIRECT FOR T-BILLS
To make government securities more accessible and investment planning easier for retail investors, RBI has added an auto-bidding feature for Treasury Bills (T-bills) on its Retail Direct portal.
This allows individuals to schedule both fresh investments and re-investments in T-bills through automatic bids in primary auctions. It helps investors participate regularly without manually placing bids each time. This update builds on recent innovations, including a mobile app launch in May 2024, aimed at boosting retail participation in the G-Sec market.
RE-KYC AND INCLUSION DRIVES LINKED TO JAN DHAN YOJANA
As the Jan Dhan Scheme marks its 10th anniversary, many account holders are due for re-KYC updates. To manage this, banks are setting up doorstep service camps at Panchayat levels from July 1 to September 30.
These camps will help with re-KYC processes, opening new accounts, and promoting social security schemes such as micro-insurance and pensions. The initiative is also aimed at spreading financial literacy and resolving customer grievances, especially in rural and semi-urban areas, enhancing financial inclusion.
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