Begin typing your search above and press return to search.

PM Modi Launches RBI Retail Direct Scheme, All Details You Need To Know

On the lines of developed markets like America, now common Indians will also get an opportunity to invest money in government bonds etc.

PM Modi Launches RBI Retail Direct Scheme, All Details You Need To Know

Sentinel Digital Desk

New Delhi: The Prime Minister Narendra Modi on Friday launched the RBI Retail Direct Scheme in a virtual meet which will allow retail investors to buy and sell government bonds online.

The scheme was announced in February 2021 by Reserve Bank of India (RBI) in its monetary policy meeting.

The portal for buying and selling of government securities (G-Secs) can be accessed at rbiretaildirect.org.in

What is Retail Direct Scheme?

On the lines of developed markets like America, now common Indians will also get an opportunity to invest money in government bonds etc. With this, now you will be able to earn well by investing money in government securities like bonds, treasury bills etc. Here the investment will be safe as the government guarantees.

As per the RBI the details provided by RBI, these small investors can now invest in G-Secs by opening a gilt securities account with the RBI. The account opened will be called Retail Direct Gilt (RDG) Account.

Who can open RDG account?

According to the Reserve Bank, retail accounts can be opened by only those investors who fulfill the following conditions:

He/She has a Rupee savings account in a bank

He/She should have a PAN card issued by the Income Tax Department

For KYC they should have documents like Aadhar, Voter ID card

They should have valid e-mail id and registered mobile number

The RDG account can be opened singly or jointly with another retail investor who meets the eligibility criteria.

How to register on the online portal?

By filling up the online form any investor can register on the online portal. Upon successful registration, 'Retail Direct Gilt Account' will be opened and details for accessing the online portal will be conveyed through SMS/e-mail.

Notably, the account shall be available for primary market participation as well as secondary market transactions on NDS-OM.

Buying and selling of government securities via online portal

After opening of the account, retail investors can buy government securities in the primary market, where government bonds are issued for the first time or buy/sell the existing government bonds in the secondary market.

Is it safe to invest money in them?

The bonds issued by the government are called government bonds. Bonds are considered very safe if seen from an investor's point of view. Especially government bonds are very safe. The reason is that they have government guarantee.

Why and when does the Government Issue bonds?

To meet its fiscal deficit, the government issues bonds. Government bonds are called Government Securities (G-Secs). Through these, money is raised from investors. Earlier only big investors could invest in them.

Through these, money is raised from investors. Earlier, only big investors could invest in them. But now even small investors are allowed to invest in them. The maturity period of the bond can range from one to 30 years. The return from a bond is called the yield. A bond's yield and its value are inversely related. This means that when the price of a bond falls, its yield increases. As the price of a bond increases, its yield decreases.

Also read:'Hate speech content decreasing on Facebook, Instagram'

Also watch:





Next Story