The Reserve Bank of India (RBI) has recently issued the 'RBI Retail Direct' scheme, which is a one-stop solution to facilitate investment in government securities (G-secs) by individual investors.
Under this, retail investors will have the facility to open and maintain the ‘Retail Direct Gilt Account’ (RDG Account) with RBI to access its G-Sec platform.
Through the 'RBI Retail Direct’ scheme, an investor would be able to bid in G-Secs auctions and buy them in the secondary market as well.
Here are key things to know about RBI's scheme:
Retail investors, as defined under the scheme, will be able to register under the Scheme and maintain an RDG Account, if they have the following:
i) Rupee savings bank account maintained in India;
ii) Permanent Account Number (PAN) issued by the Income Tax Department;
iii) Any OVD for KYC purpose;
iv) Valid email id; and
v) Registered mobile number.
Non-Resident retail investors eligible to invest in Government Securities under Foreign Exchange Management Act, 1999 will also be eligible under the scheme. The RDG account can be opened singly or jointly with another retail investor who meets the eligibility criteria.
Scope of the Scheme
‘RBI Retail Direct’ is a comprehensive scheme that will provide the following facilities to retail investors in the government securities market through an online portal:
i) Open and maintain a ‘Retail Direct Gilt Account’ (RDG Account)
ii) Access to primary issuance of Government securities
iii) Access to NDS-OM
Fee and charges
No fee will be charged for opening and maintaining a 'Retail Direct Gilt account’ with RBI. No fee will be charged by the aggregator for submitting bids in the primary auctions. Fee for payment gateway, etc, as applicable, will be borne by the registered investor.
Investors will be able to register on the online portal by filling up the online form and use the OTP received on the registered mobile number and email id to authenticate and submit the form.
Instructions issued under RBI-Know Your Customer (KYC) Direction, 2016, updated from time to time, will be adhered to during onboarding the investors. Upon successful registration, ‘Retail Direct Gilt Account’ will be opened and details for accessing the online portal will be conveyed through SMS/e-mail.