Retail Direct Scheme By RBI A Good Opportunity For Retail Investors: Experts

Prime Minister Narendra Modi launched two customer-centric initiatives of the Reserve Bank of India (RBI) with a view to provide opportunities to retail investors to participate in the government securities market and contribute towards nation-building.

The two initiatives of RBI -- retail direct scheme and integrated ombudsman scheme -- will also promote financial inclusion, he said. The Prime Minister, while launching two innovative, customer-centric initiatives, said these schemes would expand the scope for investment and improve customer grievance redressal mechanism.

The retail direct scheme, he said, would provide access to small investors to earn assured returns by investing in securities and it will also help the government to garner funds for nation-building.

According to Dr. Ravi Singh, Head of Research & Vice President, ShareIndia, the retail direct scheme offered by RBI is a good opportunity for retail investors to invest in government securities, sovereign bonds etc.

"It is the first time in India when retail investors will have an option of a simple and direct channel for investment in government securities. The government securities offer a low risk and low return on the investment as compared to investment in equity or asset. We advise retail investors must diversify their investment and go for this advantage to have a better and safe return," he stated,

According to Siddharth Maurya, Resource Specialist- Fund Management, the launch of the RBI Direct scheme will enable investors to directly invest in central government securities, sovereign gold bonds, state development loans, etc.

"This is a positive initiative towards building more robust and inclusive financial systems. Simultaneously, it will enable individual investors to play out directly in risk-mitigated financial instruments and make elevated yields. This is also a step towards building a vibrant digital economy," he stated.