Latest news with #RetailDirect
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Business Standard
a day ago
- Business
- Business Standard
Treasury bills: Use SIP to smooth rate volatility, invest steadily
Investors with regular income, short-term goals, and a strong need for capital preservation may go for T-Bills premium Himali Patel Listen to This Article The Reserve Bank of India (RBI) has introduced the systematic investment plan (SIP) feature for investing in treasury bills (T-Bills) via its Retail Direct platform. Retail investors must understand the suitability of this instrument for their financial goals before venturing into them. Understanding T-Bills T-Bills are short-term government borrowing instruments issued by the RBI. 'T-Bills have tenures like 91, 182, and 364 days. Dated government securities (G-Secs) are issued by the RBI for longer-term borrowing, with tenures ranging from one year to 50 years,' says Udbhav Shah, proprietor, DravyaSiddhi, an Association of Mutual Funds in India (Amfi)-registered mutual fund and
Time of India
3 days ago
- Business
- Time of India
Settling claims to get easier for heirs of deceased clients
MUMBAI: India's central bank is moving to simplify how banks release funds or valuables belonging to deceased customers. Reserve Bank of India will impose a single, standard procedure for settling such claims for both deposits and safe-deposit lockers. This will replace the patchwork of rules that currently varies from bank to bank. A draft circular will soon be released for public consultation. The reform builds on provisions in the Banking Regulation Act, 1949, which require a nomination facility to help survivors, nominees and legal heirs access funds or property quickly, without unnecessary bureaucratic hurdles. The RBI also announced a new auto-bidding feature for its Retail Direct platform, allowing investors to place automatic bids for both investment and re-investment in Treasury-bill auctions. The system is meant to help individuals plan investments more systematically. Retail Direct, launched in 2021, allows retail buyers to purchase government securities in both primary and secondary markets, and has steadily added features, which include a mobile app rolled out in May 2024, to make direct investment in sovereign debt more accessible. Banks in India follow varying procedures to release funds or valuables when an account or locker holder dies, depending on whether there is a nominee, a survivorship clause, or multiple legal heirs. Stay informed with the latest business news, updates on bank holidays and public holidays .
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Business Standard
3 days ago
- Business
- Business Standard
RBI allows treasury bills investment via SIP in Retail Direct scheme
The Reserve Bank of India (RBI) has introduced systematic investment plans (SIPs) facility for investment in treasury bills in the central bank's Retail Direct scheme. 'To enable investors to systematically plan their investments, an auto-bidding facility for treasury bills (T-bills), covering both investment and reinvestment 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. The Retail Direct portal was launched in November 2021 to facilitate retail investors to open their gilt accounts with the RBI under the Retail Direct scheme. It allows retail investors to buy government securities (G-Secs) in primary auctions as well as buy and sell G-Secs in the secondary market. According to RBI's recent data, the retail investors continue to invest more in treasury bills as compared to instruments like state and central government securities, and sovereign gold bonds through the scheme. 'We are expanding the functionality in RBI Retail Direct platform to enable retail investors to invest in treasury bills through systematic investment plans,' RBI governor Sanjay Malhotra said. As of August 4, 68 per cent of the total primary market subscriptions were channelled through T-bills, whereas, only 10.4 per cent subscriptions were through central government dated securities. Subscriptions through state government securities, and sovereign gold bonds were 6.2 per cent, and 4.3 per cent respectively. The subscriptions through floating rate saving bonds stood at 11 per cent. Since the launch of the scheme, RBI has introduced several new features, including the launch of a mobile app in May 2024. According to experts, the new functionality is expected to support the market and indicates a proactive approach by RBI. Vishal Dhawan, co-founder, Plan Ahead Wealth Advisors, said, 'This is a way to put money through the RBI direct platform into treasury bills for saving money towards either short-term or long-term investor needs. It has been one of the missing links as far as the debt side is concerned because most of the retail participation in debt has traditionally come through institutions like insurance companies, mutual funds, etc.' Another treasury expert said, 'There is need for more clarity as the platform will have to introduce additional features to introduce SIP. Also, it is not likely to see a major difference in retail participation in the segment, unless there is a huge gap between deposit rates offered and the T-bill rates.'
Daily Mirror
3 days ago
- Business
- Daily Mirror
State pension warning for millions of Brits who are between two specific ages
According to research, two-thirds of freelancers and business owners who are approaching retirement age are facing a pension crisis, and a warning has been issued Millions of individuals born before 1965, particularly those who were self-employed, are being encouraged to review their state pension entitlement. Phoenix Insights' research indicates that two-thirds of freelancers and business owners nearing retirement are facing a pension crisis. A staggering 64% of those aged between 60 and 65 have no private retirement savings at all. Dean Butler, the managing director for Retail Direct at Standard Life, part of Phoenix Group, has voiced his concerns. It comes after reports that state pensioners could lose DWP payments after 'unfair' £10,000 rule. Dean shared: "While self-employment can bring autonomy, it also brings new financial responsibilities. One of the most often overlooked is pension saving without an employer to set up a pension plan or contribute to your pot, it's especially important to stay on top of your retirement savings." He further explained: "While those who have always worked for an employer will be used to NI contributions being taken out of their salary automatically, this is not the case when you become self-employed. You can make these payments through your yearly self-assessment or by making payments online." The Department for Work and Pensions (DWP) has increased the state pension to £11,973 for the 2025/26 financial year. However, the Pensions and Lifetime Savings Association warns that a single person needs £14,400 annually to maintain even a basic standard of living during retirement, reports Birmingham Live. This suggests that state pensioners could face a shortfall of more than £2,400 compared to the current state pension provision. The new State Pension can be claimed once you reach the State Pension age if you're a man born on or after 6 April 1951, or a woman born on or after 6 April 1953. For those born before these dates, these rules do not apply. Instead, you'll receive the basic State Pension and may also qualify for Additional State Pension. To be eligible for any new State Pension, you will need 10 qualifying years on your National Insurance record. You might also qualify if you've lived or worked abroad or paid reduced-rate National Insurance contributions. The number of qualifying years on your National Insurance record directly impacts the amount of State Pension you receive.
The Print
3 days ago
- Business
- The Print
RBI to standardise procedure for settlement of claims for accounts, lockers of deceased customers
Besides, he said, the central bank plans to expand the functionality in RBI Retail-Direct platform to enable retail investors to invest in treasury bills through systematic investment plans. This is aimed at simplifying the process for settlement of claims in favour of nominees of deceased customers. Mumbai, Aug 6 (PTI) Reserve Bank Governor Sanjay Malhotra on Wednesday said the central bank will standardise the claims settlement procedure for bank accounts and lockers. 'We will be standardising the procedure for settlement of claims in respect of bank accounts, and articles kept in safe custody or safe deposit lockers of deceased bank customers. This is expected to make settlement more convenient and simpler,' he said while addressing the third bi-monthly monetary policy. 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, according to Statement on Developmental and Regulatory Policies released by the RBI. 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, it said. '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,' it said. Presently, all banks have their system and processes in place with regard to claims with respect to account and locker by nominee of deceased but there may be some difference with respect to papers sought. Similarly, for accounts without nomination there may be some variance among banks which may be standardised and simpler. With regard to investment in treasury bills (T-bills), it said, this will enable investors to systematically plan their investments, an auto-bidding facility for 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, it said. 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. PTI DP TRB This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
