RBI Retail Direct Scheme: Reserve Bank of India (RBI) has introduced Retail Direct Scheme. This platform helps investors manage government securities (G-SECS) easily and efficiently. Allows them to manage their investments conveniently. Now let’s know the complete details about this RBI Retail Direct Scheme.
The government has recently been introducing several schemes to attract investors. In particular, it is trying to steer retail investors towards central and state government securities as well as sovereign gold bonds. In this order, the Reserve Bank of India (RBI) introduced the Retail Direct Scheme in 2020. This platform helps investors manage government securities (G-SECS) easily and efficiently. Allows them to manage their investments conveniently. Now let’s know the complete details about this RBI Retail Direct Scheme.
What are government securities?
Government securities, commonly known as G-Secs. These are financial instruments issued by the government to raise funds for various public purposes. These securities come in various forms including government promissory notes, bearer bonds and bonds held in bond ledger accounts (BLAs).
What is the requirement of RBI Retail Direct Scheme?
The primary objective of the Retail Direct Scheme is to encourage greater participation of retail investors in the G-Secs market. Historically, institutional investors have dominated this market, with limited opportunities for individual investors to engage. By encouraging retail participation, RBI aims to diversify the investor base, improve market liquidity and ensure stable demand for government bonds.
What is RBI Retail Direct Scheme?
Through the RBI Retail Direct platform, investors can access various government securities.
- Government of India Treasury Bills (T-Bill)
- Dated Securities (Dated G-Secs) issued by Government of India
- State Development Loans (SDL)
- Sovereign Gold Bonds (SGBs)
- Benefits of RBI Retail Direct Scheme
- Retail Direct Scheme offers many benefits to investors.
Ability to place non-competitive bids in primary issues of Central Government Securities and State Government Securities.
RBI provides access to the secondary market through the trading system, enabling investors to buy and sell securities.
Automatic receipt of interest payments at maturity directly into the investor’s linked bank account.
RBI Retail Direct Scheme Eligibility Criteria
To participate in the Retail Direct Scheme, investors must have certain qualifications. That is..
- Maintaining a Rupee Savings Bank Account in India.
- Having a Permanent Account Number (PAN) issued by the Income Tax Department.
- Providing valid Know Your Customer (KYC) documents including any official valid document (DVD), email id, registered mobile number.
- Eligible non-resident retail investors under the Foreign Exchange Management Act, 1999 can also participate in the scheme.
- Documents Required for Opening Retail Direct Gilt (RDG) Account
- PAN card
- Mobile Number
- Email address
- Scanned signature
- Bank account details (canceled check or manual entry)
- Aadhaar number is linked in the registered mobile number.
- Address Proof (Passport, Driving License, Voter ID, Aadhaar, NREGA Job Card or a letter from National Population Register)
How to open RBI Retail Direct Gilt (RDG) account?
Registration: Eligible investors can open an account by visiting this website.
Submission of Details: Provide personal details like full name, PAN, mobile number, e-mail address, residential address, savings bank account number. Joint account holders must provide PAN, email and phone numbers.
Authentication: Mobile numbers and email addresses need to be authenticated using OTP. All subsequent requests and services will be OTP based.
Reference Number: After providing the required details, you will receive a reference number to track the status of your application.
KYC Verification: Complete the Know Your Customer (KYC) verification process.
Nomination: Nomination details must be filled during the account opening process.
Bank Account Linking: Link your savings bank account to your Retail Direct account.
Read also: RBI @90 years: Reserve Bank of India 90th anniversary commemoration of…
