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Purpose

To increase retail participation in government securities

Brief overview of the RBI Retail Direct Scheme dated July 12, 2021

Eligibility

  1. Retail investors who are individuals (natural persons)
  2. Non-Resident retail investors eligible to invest in Government Securities under Foreign Exchange Management Act, 1999 are eligible under the scheme.
  3. The RDG account can be opened singly or jointly

Highlights

  1. Retail investors (individuals) will have the facility to open and maintain the 'Retail Direct Gilt Account' (RDG Account) with RBI.
  2. RDG Account can be opened through an 'Online portal' provided for the purpose of the scheme.
  3. The 'Online portal' will give the registered users access to:
  • Primary issuance of GS
  • NDS-OM (electronic order matching system for trading in GS in the secondary market)
  • GS include:
 
  1. GOI Treasury Bills - 3.4% - 3.72%
  2. GOI dated securities - 5.63% - 7.59%
  3. Sovereign Gold Bonds (SGB) - 2.5%
  4. State Development Loans (SDLs) - 6.33% - 8.56%
 

The interest rate varies on the tenure of the security and the state in case of SDLs

  1. Registration on the online portal
  2. Nomination facility for maximum of two nominees
  3. Pledge/Lien facility available
  4. Gift Transactions - an online facility to gift government securities to other Retail Direct Investors

  

Published by

Prashant Shah
(Proprietor Prashant Shah & Co)
Category Others   Report

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