The Reserve Bank of India has launched the Retail Direct Scheme on November 12,2021. The Scheme aims at enhancing access to government securities (G-sec) market for retail investors.
- Under this scheme, retail individual investors will be able to open a Retail Direct Gilt (RDG) Account with Reserve Bank of India. The investors must have a PAN issued by the Income Tax Department, a rupee savings bank account maintained in India, documents for KYC and registered email and mobile number. Investments can be made using the following routes:
- Primary issuance of government securities: Investors can place bids as per the non-competitive scheme for participation in primary auction of government securities and procedural guidelines for SGB issuance.
- Secondary market: Investors can buy and sell government securities on NDS-OM (‘Odd Lot’ and ‘Request for Quotes’ segments).
- The payments for transactions can be done conveniently using a savings bank account through internet-banking or Unified Payments Interface (UPI). Investors can obtain help and other support facilities on the portal itself or through a toll-free telephone number 1800–267-7955 (10am to 7pm). Investor services include provisions for transaction and balance statements, nomination facility, pledge or lien of securities and gift transactions.
- No fees will be charged for facilities provided under the scheme.
- The Scheme comes into force on November 12, 2021.