Statement on Developmental and Regulatory Policies – Key Highlights
The Reserve Bank of India (RBI), in its latest Statement on Developmental and Regulatory Policies, has announced the *introduction of auto-bidding facilities in the RBI Retail Direct portal* for *investment and re-investment in Treasury Bills (T-bills)*.
Automated bidding, also known as programmatic bidding is a strategy wherein algorithms automatically manage ad placement bids, eliminating the need for manual input by investors. By leveraging ‘real-time data’ and advanced algorithms, automated bidding aims to optimize bid amounts based on defined campaign goals and performance metrics.
Background
The **Retail Direct portal**, launched in **November 2021**, allows retail investors to open gilt accounts with the RBI under the **Retail Direct Scheme**. Through this scheme, individual investors can participate in **primary auctions** of Government Securities (G-Secs) and engage in **buying and selling of G-Secs in the secondary market**. Since its inception, the portal has seen continuous enhancements, including the addition of new products, expanded payment options, and the launch of a **mobile application in May 2024**.
New Auto-Bidding Feature
To facilitate systematic investment planning for retail participants, the RBI has now introduced an ‘auto-bidding feature’ for *T-bills*, enabling both *investment and re-investment* options. This feature allows investors to *automatically place bids* in **primary auctions of T-bills**, streamlining the investment process and offering greater convenience and efficiency.
Standardisation of Procedures for Settlement of Claims in Deposit Accounts of Deceased Customers
The RBI also announced a significant initiative aimed at *enhancing customer service standards* in the banking sector. Currently, under the *Banking Regulation Act, 1949*, a *nomination facility* is available for deposit accounts, articles in safe custody, and safe deposit lockers to facilitate smooth transfer or release upon the *death of a customer*. Although *simplified procedures* exist for claim settlement by survivors, nominees, or legal heirs, *practices vary across banks*, often causing delays and inconvenience.
To address this, the RBI has decided to *streamline and standardise* the procedures and *documentation requirements* for claim settlement across all banks. A *draft circular* outlining the proposed standardised process will be issued shortly for *public consultation*.
Scope of the Statement
The **Statement on Developmental and Regulatory Policies** outlines key measures related to:
* Regulation
* Financial Markets
These initiatives aim to further deepen retail participation in government securities and enhance transparency and efficiency in banking services.
