The RBI Direct Retail Scheme was introduced to increase the participation of the general public in buying and selling government securities. The RBI Direct Retail Scheme was launched by Prime Minister Narendra Modi on November 12, 2021.
The scheme has been notified by the Reserve Bank of India (RBI) on January 4, 2022. Retail investors are expected to participate in buying and selling government securities (G-sec) from the primary and secondary market online with the launch of the RBI Direct Retail Scheme.
Read on to know important details about the RBI Direct Retail Scheme:
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What is the RBI Retail Direct Scheme?
RBI Direct Retail Scheme is an ambitious project of the Reserve Bank of India that provides a one-stop-shop solution to retail investors to invest in G-secs. Investors can take part in the primary auctions and secondary markets to buy these G-secs. The investors can create a Retail Direct Gilt (RDG) account with RBI on the RBI Retail Direct portal.
What are the various types of government securities that are available for investment on the Retail Direct platform?
There are a variety of investment options from central and state governments like Government of India Treasury Bills (T-Bills), Government of India dated securities (dated G-Sec), State Development Loans (SDLs), and Sovereign Gold Bonds (SGB) that can be opted for by retail investors on the Retail Direct platform.
Who is eligible to open a Retail Direct Gilt (RDG) account?
Any individual can open an RDG account subject to fulfillment of the following conditions:
- Should have a rupee bank account in India
- Should have a PAN Number
- Should have a KYC identity proof document
How to open an RDG account?
The eligible individuals can follow these steps to open an RDG account:
- Open the RBI Retail Direct portal and use the registration link to begin the process
- Apply by filling in details like name, PAN, mobile number, e-mail, residential address, savings bank account number, etc. You should also choose a login name. The mobile and email will be verified using the OTP service
- Once this process is complete, you will get a reference number to track the application
- Initiate the KYC process
- Add the nomination details
- Verify the bank account
- Upon successful KYC verification, an RDG account will be opened in the name of the investor
Is there any cost involved in opening and maintaining an RDG account?
There is no cost of opening and maintaining an RDG account with RBI.
How to buy securities through the Retail Direct platform?
There are two ways of buying securities on the Retail Direct platform:
- Participating in the primary auctions of T-Bills, G-Secs and SDLs. For SGBs, you can place a bid when the subscription windows are opened by RBI.
- Participating in the secondary market by placing a buy quote on the secondary market portal
How can you bid in auctions in the primary market?
You can follow the following steps to bid in auctions in the primary market:
- Log on to the RBI Retail Direct Portal and select the primary market option at the top of the page
- Select security to bid from the ‘auction watch’ section and enter the bid amount in the ‘bid entry’ section
- You can bid before the end time of the bidding or subscription window
- You can make the payment using UPI or a net banking facility
- In case of full allotment, investors will receive the entire face value of the investment. In the case of pro-rata allotment, it will be done based on the partial allotment with the percentage being finalized as determined in the auction process.
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How to sell securities through the Retail Direct platform?
You can sell the securities by placing a sell order in the secondary market. You need to have the security in your account before you can place a sell order.
What is the minimum and maximum amount that can be invested through the Retail Direct platform?
The minimum and maximum amount that can be invested in various government securities on the Retail Direct platform are as follows:
| S. No. | Government security | Minimum (INR) | Maximum (INR) |
| 1 | T-Bills | 10,000 | The total allocation of all non-competitive bids is restricted to a maximum of 5% aggregate amount of the issue. |
| 2 | Dated G-Sec | 10,000 | 2 crore (face value) per security per auction |
| 3 | SDLs | 10,000 | 1% of the notified amount (face value) per auction |
| 4 | SGB | One gram of gold |
These are some of the salient points related to the RBI Direct Retail Scheme. You can learn more about this Scheme from the RBI website.
