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Retail participation in govt bonds needs reforms

The Reserve Bank of India (RBI) has taken another big step to encourage retail participation in the government bond market by sharing details of the Retail Direct Scheme, which was announced in February. Individual investors will now be able to open a “Retail Direct Gilt Account” directly with the central bank to buy government bonds. The account can be opened through an online portal after fulfilling the mandatory know-your-customer requirements, and individual investors will be able to buy the government of India treasury bills, dated securities, sovereign gold bonds, and state government bonds. This initiative by the RBI must be