IDBI Cap, India Post deal to retail G-Secs

IDBI Capital Market Services today signed an agreement with India Post for retailing government securities (G-Secs).

The scheme would be initially available only in select post offices in Tamil Nadu, Andra Pradesh, Mumbai and Delhi.

S Muhnot, MD & CEO of IDBI Capital, said: "Government securities have zero default risk as they are sovereign securities and also offer higher returns compared to bank deposits. Reserve Bank of India has also been encouraging retail investment in government securities."

The minimum purchase under the scheme has to be Rs 10,000 and in multiples of Rs 1,000 thereafter with a maximum investment limit of Rs 10 lakh.