PM Modi launched New RBI scheme | Retail Direct & Integrated Ombudsman scheme

By BYJU'S Exam Prep

Updated on: September 25th, 2023

Prime Minister Narendra Modi has launched two customer-centric initiatives of the Reserve Bank of India (RBI): RBI Retail Direct Scheme and RBI Integrated Ombudsman Scheme. Read the full article to know all about these two schemes.


RBI Retail Direct scheme and RBI Integrated Ombudsman scheme will make investments and lodging and addressing investment-related concerns easier and faster. RBI’s retail direct and integrated ombudsman schemes will widen the investment horizon for investors and make capital markets more accessible to investors.

RBI Retail Direct scheme

About RBI Retail Direct scheme

  • The scheme will allow you to invest directly in government securities (G-Secs) for small investors to participate in the government’s bond market for their financial security.
  • The scheme offers them a new avenue for directly investing in securities issued by the central and state governments.
  • Government Securities: They are the debt instruments (bonds and treasury bills) issued by the Reserve Bank of India on behalf of the central government
  • Retail investors can open and maintain their government securities accounts online with the RBI for free.

How Retail Direct Scheme of RBI will work?

  • Through the scheme, retail investors will have access to bidding in primary auctions as well as the central bank’s trading platform for government securities called Negotiated Dealing System-Order Matching Segment (NDS-OM).
  • There will be options to invest in central government securities, treasury bills, state development loans, and Sovereign Gold Bonds Scheme.
  • This is a positive initiative towards building more robust and inclusive financial systems.
  • It will enable individual investors to play out directly in risk-mitigated financial instruments and make elevated yields.

Are G-secs risky?

  • G-secs usually carry no credit risk because the central government is the borrower.
  • They are entirely risk-free instruments and carry interest rate risk.
  • The price of G-secs is inversely correlated to interest rates.

Integrated Ombudsman Scheme

About Integrated Ombudsman scheme

  • The scheme aims to simplify the process of redress of grievances mechanism easier for resolving customer complaints against entities regulated by RBI.
  • The central theme of the Integrated Ombudsman scheme is based on ‘One Nation-One Ombudsman’ for customers to file their complaints, submit the documents, track status, and provide feedback.
  • A multi-lingual toll-free number has also been launched to provide all relevant information on grievance redress and assistance for filing complaints.
  • RBI had introduced a complaint management system (CMS) portal as a one-stop solution for alternate dispute resolution of customer complaints not resolved satisfactorily by the regulated entities

One Nation One Ombudsman

  • RBI integrated three Ombudsman schemes and adopted the ‘One Nation One Ombudsman’ approach for grievance redressal to make the alternate dispute redress mechanism simpler and more responsive to the customers of regulated entities
  • Earlier, there were 3 Ombudsman schemes in India:
    • Banking Ombudsman Scheme
    • Ombudsman Scheme for Non-Banking Financial Companies
    • Ombudsman Scheme for Digital Transactions
  • Over 20 ombudsman offices of the Reserve Bank of India (RBI) work on consumers' grievance redressal processes across the country.

What are the advantages of the Integrated Ombudsman scheme?

  • It will act as faster resolving any grievances of customers.
  • The multi-lingual toll-free helpline number will, in addition to building trust and confidence, also reduce expenditure on both financial and human resources.
  • It will help in providing all the relevant information on grievance redress and assistance for filing complaints.
  • Under this new initiative, there will be a single point of reference for the customers to file their complaints, submit documents, track the status of their complaints.
  • It will also aid with filing complaints.

PM Modi launched New RBI scheme | Retail Direct & Integrated Ombudsman scheme

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