The RBI Retail Direct Scheme is an initiative by the Reserve Bank of India (RBI) that allows individual investors to buy and sell government securities (G-Secs) directly through an online platform. This scheme aims to make G-Sec investments more accessible to retail investors, similar to how they invest in stocks and mutual funds.
RBI Retail Direct (RBI-RD) Scheme
- Primary issuance of government securities: Investors can place bids as per the non-competitive scheme for participation in the 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).
According to details provided by RBI, these small investors can now invest in G-Secs by opening a gilt securities account with the RBI. The account opened will be called Retail Direct Gilt (RDG) Account.
Key Features of the RBI Retail Direct Scheme
1. Who Can Invest?
Resident individuals and Non-Resident Indians (NRIs) can invest.
A Retail Direct Gilt (RDG) Account must be opened with the RBI.
2. What Can You Invest In?
Government of India Treasury Bills (T-Bills)
Sovereign Gold Bonds (SGBs)
State Development Loans (SDLs)
Government Bonds of different maturities
3. How to Invest?
Register online at RBI Retail Direct Portal.
Complete KYC (Aadhaar, PAN, Bank details).
Invest in primary auctions (buy newly issued bonds) or secondary market (buy/sell existing securities).
4. Benefits of the Scheme
Zero charges for account opening and maintenance.
Direct investment in government-backed securities (safe investment).
Earn fixed interest periodically.
Sell anytime through the NDS-OM (Negotiated Dealing System – Order Matching) platform.
5. Risks to Consider
Market risk: Bond prices fluctuate based on interest rates.
Liquidity risk: Selling bonds before maturity might be challenging.
FAQs
RBI Retail Direct Online Portal?
Under the Scheme, retail individual investors will be able to open a Retail Direct Gilt (RDG) Account with the Reserve Bank of India, using an RBI Retail Direct Online Portal. The RBI Retail Direct Online Portal will facilitate the following:
- On-boarding of Retail Direct Investors,
- Opening and management of RDG Accounts,
- Facilitate participation in Non Competitive Bidding in Primary G-sec Auctions through the Clearing Corporation of India (CCIL)
- Facilitate Investing in Sovereign Gold Bonds (SGBs) through CCIL
- Facilitate NDS OM access to Retail Direct Investors for secondary market trading and settlement of such trades through CCIL.
Provide Investor Services such as:
- Account Statement
- Nomination Facility
- Pledge/Lien
- Gift Transactions
Facilitate Corporate Actions such as:
- Coupon Payments
- Coupon Payments
Documents Required for Retail Direct Glit Account
The individual can log in to RBI Retail Direct Portal to open a Retail Direct Gilt Account. The account can be opened online with just PAN, Rupee Savings Account, email id, and mobile number of the Individual. With these details, the individual needs to complete a seamless online KYC procedure to do registration under this scheme. Investors will have to follow the RBI KYC Guidelines while opening the RDG Account.