Unnecessary intervention

No tax benefit needed for retail bond investors

The Reserve Bank of India (RBI) is reportedly contemplating approaching the Union government to ask for tax benefits for retail investors investing in government bonds through its platform. Prime Minister Narendra Modi last week launched the RBI Retail Direct Scheme. The scheme, which was announced earlier this year, enables individual investors to open a “Retail Direct Gilt Account” with the RBI through an online portal. This will enable individual investors to participate in both primary issuances of government securities and the secondary market. The idea behind allowing individual investors to directly open an account with the RBI and participate in