RBI to issue inflation-indexed savings certificates

The Reserve Bank of India will issue inflation-indexed savings certificates which will be linked to Consumer Price Index (CPI) by November 2013 as a means to protect households against inflation.

Governnor Raghuram Rajan announced this Wednesday, saying the need of the hour is to protect households from inflation.

He also announced other steps to mitigate inflation pressures.

For eaxample, there will also be a Giro-based bill payment system where households can pay utility bills, school fees etc. anywhere and at any time.

Second, White-label ATMs will also be increased pan-India.

Three, pre-paid cards will be used for remittances and cash payments along with Aadhaar.

And fourth, the RBI will explore mobile-based payments where encrypted SMS can be used for fund transfers and mobile payments across telecom service providers and handsets.

Rajan said the RBI will shortly issue the necessary circular to completely free bank branching for domestic scheduled commercial banks in every part of the country.