From Re-KYC camps to auto investments: What RBI's 3 new moves mean for you

RBI announced key developmental and regulatory policy measures. These include standardisation of claim settlement procedures for deceased bank customers and the introduction of auto-bidding features

In its latest statement on developmental and regulatory policies, the Reserve Bank of India (RBI) on Wednesday announced a people-first agenda, with several consumer-centric reforms aimed at improving financial access, simplifying banking processes, and strengthening the reach of government-backed financial inclusion schemes.

 

 1. Standardised Claim Settlement for Deceased Account Holders

Bank customers and their families often face delays and inconsistencies in settling claims after the death of an account holder. While banks have been directed to simplify the process under the Banking Regulation Act, 1949, procedures vary widely across institutions.

 

To address this, the RBI will soon release a draft circular for public consultation to streamline and standardise the settlement procedure. This will cover:

 

• Deposit accounts
• Articles held in safe custody
• Safe deposit locker contents

 

The move is expected to bring relief to nominees, survivors, and legal heirs, allowing for faster and hassle-free access to funds and belongings, particularly during times of emotional and financial distress.

 

"Under the provisions of Banking Regulation Act, 1949, nomination facility is available in respect of deposit accounts, articles kept in safe custody or safe deposit lockers. This is intended to facilitate expeditious settlement of claims or return of articles or release of contents of safe deposit locker upon death of a customer and to minimise hardship caused to family members. The extant instructions require banks to adopt a simplified procedure to facilitate expeditious and hassle-free settlement of claims made by survivors/ nominees/ legal heirs, the procedures vary across banks. With a view to enhance customer service standards, it has been decided to streamline the procedures and standardise the documentation to be submitted to the banks. A draft circular in this regard shall be issued shortly for public consultation," RBI said in a statement. 

 

2. Auto-Bidding and Systematic Investment in T-Bills for Retail Investors

Retail investors are now being empowered with greater convenience and control through the RBI’s Retail Direct platform. Launched in 2021, the portal enables individual investors to purchase Government Securities (G-Secs), including Treasury bills, directly from the RBI.

 

In its latest update:

• A new auto-bidding feature has been introduced
• Investors can now set mandates for both initial investments and systematic reinvestments in T-bills
• The functionality is live via web and mobile app (introduced in May 2024)

 

This development is aimed at helping investors plan their portfolios better and participate more seamlessly in the government bond market.

 

"The Retail Direct portal was launched in November 2021 to facilitate retail investors to open their Gilt accounts with the Reserve Bank under the Retail Direct Scheme. The scheme allows retail investors to buy Government Securities (G-Secs) in primary auctions as well as buy and sell G-Secs in the secondary market. Since the launch of the Scheme, various new features, in terms of product as well as payment options, have been introduced, including launch of a mobile app in May 2024.

 

To enable investors to systematically plan their investments, an auto-bidding facility for Treasury bills (T-bills), covering both investment and re-investment options, has been enabled in Retail Direct. The new functionality helps investors to mandate automatic placement of bids in primary auctions of T-bills," RBI said in a statement.

 

3. Jan Dhan @10: Rural Re-KYC and Financial Inclusion Camps

To mark 10 years of the Pradhan Mantri Jan Dhan Yojana, the RBI announced a major outreach campaign for rural and underbanked populations. From July 1 to September 30, banks will conduct doorstep banking camps at Panchayat level with a focus on:

 

Re-KYC for Jan Dhan account holders

 

Opening new bank accounts

 

Enrolling beneficiaries in micro-insurance and pension schemes

 

Resolving customer grievances on-site

 

This initiative is expected to re-engage millions of dormant or outdated accounts and deepen the reach of social security schemes among bottom-of-the-pyramid customers.

 

 Key Takeaways:

• Standardised claims process for deceased customers coming soon

•  

Auto-bidding & SIP features for T-bill investors on RBI Retail Direct

 

Rural banking camps to drive re-KYC, insurance, and pension access

 

A continued focus on financial inclusion, transparency, and citizen-first governance