With the 4 percent handle eluding on a durable basis, it remains a very difficult option for the RBI to even change its stance of monetary policy to “neutral”, leave aside reducing the policy rate, says Indranil Pan of YES Bank,
Explained| Decoding RBI s big move to expand retail participation in govt securities
The expansion of retail participation in government securities markets can be expected to bring in a host of short and long term benefits to the economy. Nirav Karkera February 07, 2021 / 08:39 AM IST
Post its monetary policy committee meeting, the Reserve Bank of India (RBI) announced what is touted to be a major structural reform – the introduction of a platform offering retail investors direct access to purchase government securities. The facility will be called Retail Direct .
According to the RBI Governor, with this move, India will be among the very few nations in the world offering retail investors a direct access to government securities.