Retail Direct Scheme: RBI issues scheme for retailers to invest in Government securities, allows to open gilt accounts - TOP THINGS for investors

The Reserve Bank of India (RBI) on Monday, July 12, introduced the RBI Retail Direct facility. The facility is a one-stop solution to facilitate investment in Government Securities (G-Sec) by individual investors.  

Under this facility, retail investors will have the facility to open and maintain the Retail Direct Gilt Account (RDG Account) with RBI, the central bank said.

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RBI said: “As part of continuing efforts to increase retail participation in government securities, ‘the RBI Retail Direct’ facility was announced in the Statement of Developmental and Regulatory Policies dated February 05, 2021 for improving ease of access by retail investors through online access to the government securities market – both primary and secondary - along with the facility to open their gilt securities account (‘Retail Direct’) with the RBI.” 

It further added: “In pursuance of this announcement, the ‘RBI Retail Direct’ scheme, which is a one-stop solution to facilitate investment in Government Securities by individual investors is being issued today.” 

The highlights of the ‘RBI Retail Direct’ scheme are: 

1.) Retail investors (individuals) will have the facility to open and maintain the ‘Retail Direct Gilt Account’ (RDG Account) with RBI. 

2) The RDG Account can be opened through an ‘Online portal’ provided for the purpose of the scheme. 

3) The ‘Online portal’ will also give the registered users the following facilities; access to primary issuance of Government securities, access to NDS-OM. 

It further added that the date of commencement of the scheme will be announced at a later date.