The Reserve Bank of India on 12th November 2021 has launched the Retail Direct Scheme which is aimed at enhancing access to government securities (G-sec) market for retail investors.
Under this scheme, retail individual investors will be able to open a Retail Direct Gilt (RDG) Account with the Reserve Bank of India, using an online portal (https://rbiretaildirect.org.in). The investors must have a permanent account number (PAN) issued by the Income Tax Department, a rupee savings bank account maintained in India, documents for KYC and registered email and mobile number. Investments can be made using the following routes:
- Primary issuance of government securities: Investors can place bid as per the non-competitive scheme for participation in primary auction of government securities and procedural guidelines for SGB issuance.
- Secondary market: Investors can buy and sell government securities on NDS-OM (‘Odd Lot’ and ‘Request for Quotes’ segments).
Non-resident retail investors who are eligible to invest in G-Secs under the Foreign Exchange Management Act (FEMA) are also eligible under the scheme.
Further the payments for transactions can be done conveniently using saving bank account through internet-banking or Unified Payments Interface (UPI). Investors can obtain help and other support facilities on the portal itself and also through a toll-free telephone number 1800–267-7955 (10am to 7pm).
Investor services include provisions for transaction and balance statements, nomination facility, pledge or lien of securities and gift transactions. No fees will be charged for facilities provided under the scheme.
