RBI Retail Direct Scheme: Know the process, eligibility to open RDG account to directly invest in government securities

Prime Minister Narendra Modi on Friday launched two innovative customer centric initiatives of the Reserve Bank of India (RBI) - RBI Retail Direct Scheme and the Reserve Bank Integrated Ombudsman Scheme.

The RBI Retail Direct Scheme is aimed at enhancing access to government securities (G-sec) market for retail investors. It offers them a new avenue for directly investing in securities issued by the Government of India and the State Governments.

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Investors will be able to easily open and maintain their government securities account online with the RBI, free of cost.

If you want to open an account under RBI Retail Direct Scheme, then you can check the process here:

Retail Direct Gilt Account (RDG) opening process:

Step 1: Visit the official website of RBI Retail Direct that is ttps://rbiretaildirect.in/#/login/ and login.

Step 2: Open the account by linking OTP received on your registered mobile number and savings account.

Fees

RDG: RBI will not charge any fees or charges for opening and maintaining Retail Direct Gilt Account. Also, no charge or fee will be levied for bidding in the primary auction. The payment gateway charges will be borne by the registered investor.

Eligibility for retail investors

Retail investors should have the following to be eligible for opening the RDG account:

1. Savings account in India

2. Permanent Account Number that is PAN issued by the Income Tax Department

3. Any official document related to KYC

4. Valid email id

5. Registered mobile number

6. RDG account can be opened as single or joint account holder

7. NRI retail investors can invest in government securities only under Foreign Exchange Management Act (FEMA) norms.

8. There will be facility of two nominees, on the death of the account holder, the security score in the RDG account can be transferred to another RDG account.

9. The retail investor can also gift the security in the RDG account to another retail investor having security in the RDG account.

Investment process:

General procedure is followed for auction of government securities in the primary market.

1. Only one bid per security is allowed.

2. Facility of payment in UPI and linked bank account.

3. Refund will also be done in the linked bank account itself.

4. Allotted security will be credited in the investor's RDG account on the day of settlement.

5. Registered investors can easily buy or sell government securities on the online portal for secondary market transactions.