RBI Grade B Officer (General / DEPR / DSIM) 2024 · Question 236 of 260

- Read the passage given below and answer the following questions In recent efforts to streamline transactions and enhance investor security, the X has introduced new measures for public issues of debt securities. These measures require individual investors seeking to apply through intermediaries to use a specific method to block funds, especially for smaller subscription amounts. Investors will need to provide an account- linked payment ID associated with a bank in their bid-cum-application forms. By doing so, X aims to reduce dependency on traditional banking routes and encourage the adoption of faster, digital options for managing subscriptions. The circular issued by X outlines that this updated process will apply to public issues of multiple debt instruments, including redeemable preference shares, municipal bonds, and securitized debt products. These changes, designed to safeguard the interests of retail investors, will be implemented soon, thus requiring intermediaries to update their application protocols. Under the revised guidelines, X expects more efficient fund blocking that enhances transaction speed and reduces the risk of errors or delays, contributing to a more secure investment environment. X makes such amendments to ensure that the new protocols align with national standards for market regulation. While investors may choose other approved methods for larger applications, smaller transactions are expected to follow this updated pathway, underscoring X’s commitment to modernizing financial processes for the benefit of all participants in the securities market. (This is a recreated passage and not the exact one asked in the exam) Which method must be used to block funds for certain debt securities subscriptions, as indicated by SEBI?

Banking

1. AA. Net Banking
2. BB. ASBA
3. CC. Cheque Payment
4. DD. UPICorrect
5. EE. Direct Bank Transfer