‘RBI Retail Direct’ scheme- Highlights

July 14, 2021

Reserve Bank of India (RBI) introduced “RBI Retail Direct facility” scheme on July 12, 2021.

What is Retail Direct Scheme?

RBI’s Retail Direct Scheme is a one-stop solution to facilitate investment in Government Securities (G-Sec) by individual investors.
Under this scheme, retail investors will be provided a facility to open and maintain Retail Direct Gilt Account (RDG Account) with RBI.
This facility was launched as part of continuing efforts towards increasing retail participation in government securities.
Announcement to launch this scheme was made by RBI in Statement of Developmental and Regulatory Policies of February 05, 2021.
It was launched to improve ease of access by retail investors by online access to primary as well as secondary government securities market.
Date of implementation of scheme is not yet announced.

Features of the scheme

Under the scheme, Retail investors (individuals) will have the option to open & maintain ‘Retail Direct Gilt Account’ (RDG Account) with RBI.
RDG Account can be opened using an ‘Online portal’ provided for the purpose of this scheme.
Online portal will also provide facilities to registered users like access to primary issuance of Government securities & access to NDS-OM.
No fee will be charged on opening and maintaining account with RBI.

What is G-secs?

G-secs are debt instruments issued by government to borrow money. These instruments are not tax-free. They are the safest form of investment because they are backed by government. Risk of default associated with g-secs is almost nil. They are however, subject to fluctuations in interest rates. It can be issued in-