In a significant step towards financial inclusion and customer convenience, the Reserve Bank of India (RBI) has announced three major measures aimed at making banking services more accessible, transparent, and user-friendly. The announcement was made on Wednesday, following the Monetary Policy Committee (MPC) meeting, with RBI Governor Sanjay Malhotra highlighting that the initiatives are designed to address critical customer needs across India, particularly in rural and semi-urban areas.
Three Key Initiatives by RBI
1. Doorstep re-KYC and Expanded Financial Services
With the Pradhan Mantri Jan Dhan Yojana (PMJDY) completing 10 years, many bank accounts are due for re-KYC (Know Your Customer) updates. To simplify this process, the RBI has instructed banks to set up special camps at the panchayat level from July 1 to September 30.
These camps will not only update KYC details but also:
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Promote micro-insurance schemes for rural populations.
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Encourage pension plan enrollments to boost social security.
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Offer grievance redressal services to address customer issues on the spot.
This initiative aims to reach underserved communities, making banking more approachable and inclusive.
2. Simplified Claims for Deceased Customers’ Accounts
In a relief-oriented move, the RBI will standardise and simplify the settlement process for claims related to deceased account holders. The new guidelines will:
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Ease access for legal heirs or nominees to claim funds from bank accounts.
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Streamline the process for recovering contents from safe deposit lockers and other custodial facilities.
By reducing paperwork and removing procedural bottlenecks, this measure will help grieving families access funds more swiftly and without unnecessary delays.
3. Upgraded Retail Direct Platform for Government Securities
The RBI’s Retail Direct platform, which allows individual investors to purchase government securities (G-Secs) directly, will be upgraded to provide:
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Advanced investment planning tools for better decision-making.
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Simplified portfolio management for retail investors.
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Greater flexibility in creating and modifying investment plans.
This move is expected to attract more small investors to the G-Sec market, promoting safer investment options for the public.
Significance of the Measures
These three steps reinforce the RBI’s commitment to removing friction in the banking system and widening financial access across both urban and rural India. By focusing on digital upgrades, streamlined processes, and doorstep delivery of services, the central bank aims to:
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Make banking easier for all citizens.
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Promote financial transparency and trust.
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Ensure greater inclusion for underserved and rural populations.