How Can Indian Individual Investors Invest In Government Securities?

Indian Individual Investors Invest In Government Securities, through the Retail Direct Scheme. The Retail Direct Scheme is a one-stop solution to facilitate investment in Government Securities by individual investors. Under this scheme individual retail investors can open a Gilt Securities Account - "Retail Direct Gilt (RDG)" account with RBI. Using this account, retail investors can buy and sell government securities through the online portal.

Opening an RDG account will allow individuals to buy Government securities directly in the primary market (auctions) as well as buy/sell in the secondary market. For the retail investor, Government securities offer an option for long term investment.

What are the kinds of Government securities that I can invest in through the Retail Direct platform?

i. Government of India Treasury Bills (T-Bills)

ii. Government of India dated securities (dated G-Sec)

iii. State Development Loans (SDLs)

iv. Sovereign Gold Bonds (SGB)

What are the facilities available on the RBI Retail Direct Portal?

The RBI Retail Direct Online Portal will facilitate the following:

a. Buying Government securities through primary auctions (non-competitive segment only).

b. Buying and selling Government securities in the secondary market.

c. Buying and selling Sovereign Gold Bonds (SGBs) in the primary and secondary market.

d. Investor services such as account statement, nomination facility, pledge/lien, gift transactions, grievance redressal, and managing profile like contact details etc.

8. What is the procedure for opening a Retail Direct Gilt (RDG) account?

a. Eligible Investors may login to https://rbiretaildirect.org.in and register using the Registration link to begin the account opening process.

b. To open an account, the investor will have to furnish details like full name, PAN, mobile number, e-mail address, residential address, savings bank account number, etc. and specify a login name. Mobile number and email address will be authenticated using OTP and all further customer requests and services will be OTP based.

c. For joint accounts, the PAN, e-mail address and phone number of both holders will be required.

d. Once these details have been provided, you will get a reference number to track your application.

e. You may now initiate your Know Your Customer (KYC) verification process.

f. In case of joint accounts, the KYC verification will be done for both the holders.

g. It will be mandatory for the investor to fill in the nomination details at the time of opening of the account.

h. The savings bank account of the customer will be linked to their Retail Direct account by crediting a token amount into their bank account and verifying the same.

i. Once the KYC is successful, an RDG account will be opened in the name of the investor(s).

j. Information related to account number, login id & password to access the Online Portal will be made available to the customer on their registered e-mail id.

k. In case of KYC failures, the individual can make new application or resubmit application after making necessary changes.

An individual can open only one Retail Direct Gilt account. The second holder in a joint Retail Direct Gilt account may also open an individual Retail Direct Gilt account.