The governance of banks is improving and the trust in the system is getting stronger among depositors
Prime Minister Narendra Modi on Friday announced the launch of two customer-centric initiatives by the RBI, aimed at broadening the scope of investment in the country and making access to capital markets easier and more secure for investors. The Reserve Bank’s two initiatives, the Retail Direct Scheme and the Integrated Ombudsman Scheme, will also promote financial inclusion and help with grievance redressal, he said.
One of the most important touchstones of any democracy is the strength of its grievance redressal system. The IOS will go a long way towards strengthening the system. Similarly, the retail direct scheme will strengthen financial inclusion by allowing the middle class, employees, small business owners, and senior citizens to invest their small savings directly and securely in government securities. The provision of guaranteed settlement in government securities provides the small investor with assurance of safety. The One Nation, One Ombudsman System has taken shape in the banking sector with the IOS, the PM said while launching the two initiatives via video conference.
At the event, Finance Minister Nirmala Sitharaman and RBI Governor Shaktikanta Das were also present.
The Retail Direct Scheme, Modi said, has provided small investors in the country with a simple and secure way to invest in government securities.
Growing trust in the system
Over the last seven years, NPAs have been identified with transparency, the emphasis has been on resolution and recovery, public sector banks have been recapitalized, and reforms in the financial system and public sector banks have been implemented one after the other. Cooperative banks were also brought under the RBI’s control in order to strengthen the banking sector further. As a result, the governance of these banks is improving, and depositors’ trust in this system is growing, the PM stated.
“In recent years, the country’s banking sector has undergone reforms ranging from inclusion in the financial sector to technological integration. We have seen their strength during the difficult times of Covid. The decisions of the RBI also helped in increasing the impact of the big decisions that the government has taken in recent times. I am confident that RBI will continue to strengthen India’s new identity as a sensitive and investor-friendly destination, ” he added.
