UPSC Prelims 2021 Question:

With reference to India, consider the following statements

1. Retail investors through demat account can invest in 'Treasury Bills' and 'Government of India Debt Bonds' in primary market. 
2. The 'Negotiated Dealing System-Order Matching' is a government securities trading platform of the Reserve Bank of India. 
3. The 'Central Depository Services Ltd' is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange. 
   
   

Which of the statements given above is/are correct?

Explanation:

• • The RBI has allowed retail investors to open gilt accounts with the RBI. It is proposed to provide retail investors with online access to the government securities market (primary and secondary) through the RBI. So, statement 1 is correct.

• Negotiated Dealing System-Order Matching 

• • It is a screen-based electronic anonymous order matching system for secondary market trading in Government securities owned by RBI. So, statement 2 is correct.
• Central Depository Services Ltd (CDSL): 
  • It was promoted by BSE Ltd. jointly with leading banks such as State Bank of India, Bank of India, Bank of Baroda, HDFC Bank, Standard Chartered Bank and Union Bank of India.
  • CDSL was set up with the objective of providing convenient, dependable and secure depository services at an affordable cost to all market participants. So, statement 3 is not correct.
    
    

Therefore, option (2) is the correct answer.

Relevance: The Reserve Bank of India launched the Retail Direct Scheme.

Subject: Economics | Money and Banking