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Why RBI retail direct is not an attractive investment option for common man

One of the main concerns of the RBI retail direct scheme is liquidity

RBI, bonds, OMO
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Small Savings Instruments (SSI) – the interest rate of which is set by the government - pose the biggest challenge to the scheme

Manojit Saha Mumbai
The Reserve Bank of India’s latest offering for retail investors - investing in government securities - is likely to fall flat as returns from the scheme are much less attractive compared to other available options.

RBI Retail Direct Scheme, an investment option for retail investors was launched on Friday amid much fanfare by Prime Minister Narendra Modi. This scheme was described as a ‘significant milestone’ by the RBI in a statement, which also said that it would ‘bring G-secs within easy reach of the common man by simplifying the process of investment’.

Under the scheme, retail individual investors have to

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First Published: Nov 16 2021 | 1:17 PM IST

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