PM Narendra Modi launches RBI retail direct scheme, Check details here

The Reserve Bank of India has introduced a scheme that allows individual investors to buy and sell government assets.

On November 12, Prime Minister Narendra Modi through video conferencing introduced two new and customer-centric Reserve Bank of India (RBI) projects. The occasion was also attended by Union Finance Minister Nirmala Sitharaman and RBI Governor Shaktikanta Das. The retail direct programme and the integrated ombudsman scheme will be implemented with the goal of making access to justice easier.

What is the Retail Direct Scheme of the RBI?

The RBI Retail Direct Scheme enables retail investors to buy and sell government securities (G-sec) in the primary and secondary markets via the internet. Small investors can now invest in G-Secs by opening a gilt securities account with the RBI, according to details published by the RBI. Retail Direct Gilt (RDG) Account will be the name of the new account.

Who is eligible to open an RDG account?

According to the RBI’s announcement of July 12, 2021, a retail investor can register an RDG account if they have the following:

  • Rupee savings bank account in India.
  • PAN Card issued by IT Department.
  • For KYC purposes, any official valid document such as Aadhaar or Voter ID would suffice.
  • Valid E-mail address.
  • Registered Contact Number

How can I sign up for the online portal?

Investors can register on the web portal by filling out the online form and verifying their information with the OTP sent to their registered mobile number and email address. After completing the registration process, a ‘Retail Direct Gilt Account’ will be created, and instructions for accessing the web portal will be sent through SMS/e-mail.

On the NDS-OM, the RDG Account will be available for both primary and secondary market transactions.

Other services for investors:

  1. The website will provide an account statement that details the transaction history and current balance of the Retail Direct Gilt Account’s securities holdings. All transaction alerts will be sent by e-mail or SMS.
  2. The registered user will also have the option of making a nomination. A maximum of two nominations is allowed. On filing of a death certificate and a transmission form, the securities in the RDG account or any other Government securities account of the nominee can be transferred to the RDG Account or any other Government securities account of the nominee.
  3. A retail investor can take out a loan against the RDG account’s securities.
  4. Any question or complaint about the scheme can be sent using the portal, which will be handled/resolved by the RBI’s Public Debt Office (PDO) in Mumbai.

Government securities are advantageous to invest in since they are a sort of financial investment instrument that provides investors with secure and guaranteed returns. The government ensures that the promised returns are received by the investors at the end of the term.

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