Context:
In a major push towards inclusive financial growth, Reserve Bank of India Governor Sanjay Malhotra announced three key consumer-centric initiatives following the August 2025 MPC meeting. These schemes target ease of access, simplified procedures, and broader retail participation, especially benefiting those at the bottom of the financial pyramid.
1. Doorstep Re-KYC for Jan Dhan Account Holders
Objective: To simplify KYC compliance for financially underserved sections.
- Method: Banks will organize Re-KYC camps at the Panchayat level.
- Additional Services:
- Opening of new bank accounts.
- Enrolment in micro-insurance and pension schemes.
- Redressal of customer grievances.
- Significance: Supports 10-year milestone of Pradhan Mantri Jan Dhan Yojana (PMJDY) and promotes last-mile connectivity in banking.
2. Simplified Claims Process for Deceased Customers
Objective: To relieve families of procedural burdens after the death of a bank account holder.
- Key Features:
- Standardized and streamlined process across all banks.
- Uniform timelines and documentation requirements.
- Applies to both account funds and locker contents.
- Impact:
- Reduces legal and administrative hassles.
- Offers faster and fairer access to rightful claimants.
3. Systematic Investment Plans (SIPs) in Government Securities via Retail Direct
Objective: To promote retail investor participation in sovereign debt markets.
- New Feature: Enables SIP functionality for Treasury Bills (T-Bills).
- Platform: RBI’s Retail Direct portal, launched in 2021.
- Benefits:
- Encourages automated, disciplined investing.
- Makes short-term G-Sec instruments accessible to small investors.
- Outcome Expected: Enhanced financial literacy, greater depth in the G-Sec market, and improved household savings discipline.
Why It Matters?
These reforms underline the RBI’s commitment to:
- Financial inclusion and consumer empowerment.
- Streamlining legacy banking processes.
- Democratizing access to investment instruments.
