The Retail Direct scheme has just been launched, allowing investors to invest directly in government securities. To participate, retail investors need to open a gilt securities account known as “Retail Direct Gilt Account” (RDG) with the Reserve Bank of India (RBI).
Who can open
Retail investors can open the RDG account with the following:
- Rupee bank account
- PAN
- Valid documents for KYC - PAN/passport/driving license/Aadhaar
- Valid email id
- Registered mobile number
RDG account can be opened individually as well as jointly with another retail investor (individual) who fulfill the above criteria.
Portal
The RDG account can be opened online by visiting the following link: https://www. rbiretaildirect.org.in/
Also Read: Will RBI Retail Direct Gilt Account benefit you?
Process
The investor needs to fill up details such as name, PAN, mobile number, email id, address, and bank account details. OTP authentication of the mobile number and email id is done and a tracking number is allotted. Next, the KYC verification process of the investor (all holders in case of joint accounts) is carried out and also the bank account of the investor is verified. Once the process is completed, the RDG account is opened in the investor’s name.
Confirmation
The investor will receive an email confirmation along with account number, login id and password to access the online portal and avail the services of the portal.
Also read: How to register for RBI Retail Direct scheme to invest in government securities
Point to note
- Interest or maturity proceeds from the investments are credited directly to the bank account of the investor linked to the RDG account.
- No fee is charged for opening or maintaining the RDG account
RBI launches Retail Direct: How retail investors can invest in Government Securities
Prime Minister Narendra Modi on Friday in a virtual meet launched the ‘RBI Retail Direct scheme’. The scheme allows retail investors to buy and sell government bonds online. The Reserve Bank of India (RBI) announced the scheme in its February 2021 monetary policy. Watch
Also read: PM Modi launches RBI Retail Direct: Here’s how it works
(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
FAQs
The investor must furnish details like name, PAN card, mobile number, email address, residential address, bank account number, etc. It will verify the mobile number, email address, bank account, etc., through an OTP-based process. They will also require adhering to KYC guidelines for individual and joint accounts.
How to create a gilt account? ›
The investor must furnish details like name, PAN card, mobile number, email address, residential address, bank account number, etc. It will verify the mobile number, email address, bank account, etc., through an OTP-based process. They will also require adhering to KYC guidelines for individual and joint accounts.
How NRI can buy government bonds in India? ›
While there are no ceilings on investments by NRIs, the RBI only allows NRI investors defined in section 2(w) of the Foreign Exchange Management Act, 1999 (FEMA) to invest in certain government bonds. The central bank also periodically notifies what 'Specified securities' FAR investments are allowed.
How can I buy bonds directly in India? ›
There are a few ways in which one can buy government bonds in India:
- Banks and Post Offices. ...
- Brokerage House. ...
- Gilt Mutual funds (MFs) and Exchange-Traded Funds (ETFs) ...
- RBI Retail Direct. ...
- NSE goBID or BSE Direct.
Yes, NRIs can invest in RBI bonds in India. To invest in bonds as an NRI, one must utilize the “NRI Window” which gets enabled while the issuing of the bonds by the issuer. The rules and regulations for investing are the same for NRIs and OCIs (Overseas Citizen of India).
Can NRI buy Treasury bills in India? ›
NRIs and Overseas Citizens of India (OCIs) are allowed to invest in instruments such as G-Secs, SDLs, and T-bills directly in the primary market through the RBI retail direct platform. They can also buy and sell these instruments in the secondary markets via an RBI retail direct account.
What is retail direct gilt account? ›
Under the Retail Direct Scheme, retail investors can open a gilt account with the RBI if they have a savings bank account in India, a Permanent Account Number (PAN), apart from email id and a valid phone number. They must provide any officially valid document for KYC, such as Aadhaar, Passport, Voter ID, etc.
Do you need an account for gilt? ›
No, you don't need to. You can make purchases and check out as a guest everytime. However, by setting up an account with us, it will allow you to order without having to enter your details every time you shop with us.
How risky are gilt funds? ›
Gilt Funds carry no credit risk as they are issued by the government who never defaults on its payments. However, these funds carry the risk of changing interest rates.
How can NRI buy gold in India? ›
You will need a demat account with a registered brokerage firm to invest in them. Investors can buy and store this is in a demat form and if they wish, they can also redeem digital gold to take physical delivery of the gold.
NRIs can invest in Mutual Funds, National Pension Scheme, Bonds and NCDs, Fixed Deposits, Public Provident Fund, Equity, Real estate, and more.
What is RBI Retail Direct? ›
Retail Direct scheme is a one-stop solution to facilitate investment in Government Securities by Individual Investors.
Can I buy bonds without Demat account? ›
To invest in sovereign bonds, you do not need a demat account. Customers who do not have a demat account will receive both physical and electronic certificates.
How can I buy RBI bonds online? ›
Steps to Apply Online
- Login to your ICICIdirect.com account.
- Go to FD/Bonds & Click on 'Go Issuances'
- Select 'Floating Rate Savings Bonds'
- Apply & complete Order in few clicks.
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How to buy gilts retail? ›
Retail investors can now buy newly issued UK gilts at the same price paid by banks at government auctions. Previously, these investors could only buy the bonds at secondary-market prices. Investors need to open an account with UK investment platforms Hargreaves Lansdown or Interactive Investor.
How do I invest in gilt? ›
How to buy UK gilts. The easiest way to buy and sell UK gilts directly is online - we offer a select range that can be dealt via our web platform. Or, to access our full range, call our dealing services team on 0345 54 32 600.
What is gilt account RBI? ›
A Gilt Account is a dematerialized account maintained with a scheduled commercial bank or PD. The proprietary transactions in G-Secs undertaken by PMs are settled through SGL account maintained by them with RBI at PDO.
How to invest in RBI bonds online? ›
Steps to Apply Online
- Login to your ICICIdirect.com account.
- Go to FD/Bonds & Click on 'Go Issuances'
- Select 'Floating Rate Savings Bonds'
- Apply & complete Order in few clicks.
