IDBI starts India’s first G-Sec facility via ATMs

In Banking and Finance
March 17, 2016

IDBI Bank has launched a first-of-its kind “G-Sec investment facility through ATM for retail investors.” The facility will provide easy access to retail investors to invest in Government Securities, the public sector bank said in a statement. Retail customers of the bank can register, one time, for this facility and invest in G-Sec through ATMs.

This facility is unique and first of its kind initiative of the Bank to provide easy access to retail investors to invest in Government Securities.
This furthers the Bank’s contribution to promote and popularize retail participation in Government Securities in line with the Government of India and RBI’s efforts towards broad basing and expanding retail holding of Government Securities in the country.
The process of transacting in G-Sec through the ATM is very simple, convenient, transparent and cost-effective.
The facility of investing in G-Sec through ATM is an extension of Bank’s Samriddhi G-Sec Portal to enable retail investors to transact in Government Securities.
The retail customers of the Bank can register, one time, for this facility and invest in G-Sec through any of the Bank’s ATMs.

Did You Know???

IDBI Bank is an Indian government-owned financial service company, formerly known as Industrial Development Bank of India, headquartered in Mumbai.
It was established in 1964 by an Act of Parliament to provide credit and other financial facilities for the development of the fledgling Indian industry.
IDBI Bank’s equity shares are listed on Bombay Stock Exchange and the National Stock Exchange of India.
A committee formed by RBI under chairmanship of SH Khan recommended the development financial institution (IDBI) to diversify its activity and harmonise the role of development financing and banking activities by getting away from the conventional distinction between commercial banking and developmental banking

On 29 February 2016, the Finance Minister Arun Jaitley declared in the Union Budget 2016-17 that there is a possibility of dilution of the Government of India stake in IDBI Bank to below 50%. This created much disturbance among employees due to possibility of privatization of the bank.