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RBI Retail Direct Scheme: Individuals can now directly buy T-bills, G-Secs

Individuals can now directly purchase treasury bills, dated securities, sovereign gold bonds and state development loans from primary as well as secondary markets, thanks to RBI Retail Direct Scheme

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RBI | Reserve Bank of India

Press Trust of India  |  New Delhi 

photo: Bloomberg
Photo: Bloomberg

Individuals can now directly purchase treasury bills, dated securities, sovereign gold bonds (SGB) and state development loans (SDLs) from primary as well as secondary markets, thanks to the Retail Direct Scheme launched by Prime Minister Narendra Modi on Friday.

As per the scheme, retail investors (individuals) will have the facility to open an online Retail Direct Gilt Account (RDG Account) with the (RBI). These accounts can be linked to their savings bank accounts.

The RDG Accounts of individuals can be used to participate in the issuance of government securities and secondary market operations through the screen-based NDS-OM.

NDS-OM, a screen-based electronic anonymous order matching system for secondary market trading in government securities owned by RBI, is currently open only to institutions like banks, primary dealers, insurance companies and mutual funds.

Earlier in the day, the Retail Direct Scheme was launched in virtual mode by Prime Minister Narendra Modi.

"A significant milestone in the development of the government securities (G-sec) market, the Reserve Bank of India-Retail Direct (RBI-RD) Scheme will bring G-secs within easy reach of the common man by simplifying the process of investment," the central bank said in a statement.

Retail direct investors will have an online facility to gift government securities to other retail direct investors.

Payments for transactions can be done conveniently using saving bank account through internet-banking or unified payments interface (UPI). Investors can obtain help and other support facilities on the portal itself and also through a toll-free telephone number 1800-267-7955 (10 am to 7 pm) and email.

Investor services include provisions for transaction and balance statements, nomination facility, pledge or lien of securities and gift transactions.

"No fees will be charged for facilities provided under the scheme," the said, and added the scheme aims to provide a safe, simple, direct and secured platform to investors.

Retail investors can register under the scheme and maintain a RDG account, if they have savings bank account maintained in India; PAN; any officially valid document for KYC purpose; valid email ID; and registered mobile number.

Securities purchased will be credited to the RDG Account on the day of settlement.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Fri, November 12 2021. 17:43 IST
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