The Reserve Bank on Friday (12.11.2021) announced the activation of the RBI Retail Direct (RBI-RD) Scheme with effect from today. RBI-RD Scheme will bring G-secs such as Government of India Treasury Bills; Government of India dated securities; Sovereign Gold Bonds (SGB); and State Development Loans (SDLs), within easy reach of the common man by simplifying the process of investment. The Scheme aims to provide a safe, simple, direct, and secure platform to investors. Investors can buy securities using savings bank accounts through Internet banking or the Unified Payments Interface (UPI). Retail Direct Investors will have an online facility to gift government securities to other Retail Direct Investors. Investor services include provisions for transaction and balance statements, nomination facility, pledge or lien of securities, and gift transactions. No fees will be charged for facilities like opening and maintaining accounts under the scheme or for aggregator (Aggregator / Receiving Office means Clearing Corporation of India Limited (CCIL) or any other entity as may be approved by RBI under the scheme) submitting bids in the primary auctions.
How does it work?
The ‘Retail Direct Gilt Account’ (RDG Account) with RBI can be opened using an online portal (https://rbiretaildirect.org.in). Investors can register on the online portal by filling up the online form and using 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 the onboarding of the investors. Upon successful registration, a ‘Retail Direct Gilt Account’ will be opened and details for accessing the online portal will be conveyed through SMS/e-mail.
The registered users can have access to the primary issuance of Government securities through the online portal. They will as well have access to the secondary market of Government securities through NDS-OM. Investments can be made using the following routes:
Requirements for opening an RDG account by an Individual:
The RDG account can be opened singly or jointly with another retail investor who meets the eligibility criteria. Retail investors, as defined under the RBI Retail Direct scheme, can register under the Scheme and maintain an RDG Account, if they have the following:
Non-resident retail investors eligible to invest in Government Securities under the Foreign Exchange Management Act, of 1999 are eligible under the scheme.
Investors can obtain help and other support facilities on the portal itself and also through a toll-free telephone number 1800–267-7955 (10 am to 7 pm) and email.
Source: RBI website
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