Mumbai: Reserve Bank on Monday issued a Scheme ‘RBI Retail Direct’, a one-stop solution to facilitate investment in government securities by individual investors.
There are no fees to be charged to open and maintain ‘Retail Direct Gilt Accounts’ with the RBI.
However, the cost for payment gateways, as applicable, will be borne by registered investors.
As part of sustainable efforts to increase retail participation in government securities, facilities’ RBI Retail Direct ‘was announced in February 2021 to increase the ease of access by retail investors through online access to the government securities market – together with facilities to open their Gilt effect accounts (‘ retail Direct ‘) with RBI.
“Retail investors (individuals) will have facilities to open and maintain the ‘Retail Direct Gilt Account’ (RDG Account) with the RBI,” said the central bank, and added an account can be opened through the ‘online portal’ provided for the purpose of the scheme.
‘Online Portal’ will also provide registered facilities for facilities to access the main publication of government securities, as well as access to NDS-OM.
NDS-OM means the matching system of RBI electronic orders, anonymously to trade in government securities in the secondary market.
The date of the start of the scheme will be announced later on, said RBI.
“The Reserve Bank of India (RBI) Retail Direct scheme has been formulated as a one-stop solution to facilitate investment in government securities by individual investors,” he said.
Retail investors can register under the scheme and maintain a RDG account, if they have a bank account savings rupee that is maintained in India; Permanent account number (PAN), ‘valid’ official ‘document for KYC purposes; Valid e-mail ID; and registered cellphone numbers.
Non-resident retail investors qualified to invest in government securities in foreign exchange management laws, 1999 also qualified below the scheme.
The RDG account can be opened in a single or along with other retail investors who meet the feasibility criteria, RBI said.
Government effects, for the purpose of the scheme, meaning the effects published in the form of shares with credit to the SGL / CSGL account are maintained with the RBI.
These include the government of Indian treasury bills; The Indian government is dated securities; Sovereign Gold Bonds (SGB); and state development loans (SDL).
In investor services, RBI said registered investors can use online portals for account reports, nominating facilities, promises / mortal rights, gift transactions, and redressal complaints.