On Nov 12, 2021, the Reserve Bank announced the activation of the RBI Retail Direct Scheme. The Scheme was launched  in virtual mode by the PM Narendra Modi. The Scheme aims to provide a safe, simple, direct and secured platform to investors. Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors, explains the details of RBI Retail Direct Scheme:-

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https://rbiretaildirect.org.in .  The procedure to open the account is simple and once the account is opened the account holder can directly start trading in the following:

1. Government of India Treasury Bills
2. Government of India Dated Securities
3. Sovereign Gold Bonds
4. State Developmental Loans.

The investors can participate in the Primary Market issuances as well as Secondary Market issuances. Registered investors can access the secondary market access link provided on the portal to Buy or Sell Government securities through NDS-OM. For primary market bidding one can transfer the amount/block the amount through UPI/Net Banking. For secondary market transactions one needs to transfer the amount before start of the trading hours to the designated account of the aggregator. At the end of the day any unused/balance amount will be credited back to the savings bank account. Securities purchased will be credited to the RDG account on the designated day by the Aggregator. Details of the scheme can be seen from the link given below.

https://rbidocs.rbi.org.in/rdocs/content/pdfs/RBIRDS151121_AN.pdf," Anil Kumar Bhansali said.

On why did the RBI go for the Direct Gilts Scheme, he added, "1. The RBI has by opening the scheme for the Retail Investors given another opportunity (apart from equity and currency) for Retail investors to trade in the market while from earning interest by holding the securities.  2. The GOI borrowing programme was mostly financed by Banks and Financial Institutions and there was very little space left for the Corporates. The scheme will allow more money to be left in the market for corporates.
3. This will deepen our Bonds Market with more participants."

"So now retail participants can take part in the movement in interest rates by buying and selling Gilts at appropriate time," Bhansali concluded.