Skip to main content

What is Retail Direct Gilt Account?

For those investing in government securities, managing their investments has got easier with the introduction of Reserve Bank of India’s (RBI’s) Retail Direct Scheme. 

What is Retail Direct Scheme?

Retail Direct scheme is a one-stop solution for investment in Government Securities by individual investors.

Which securities are covered under Retail Direct Scheme?

(Updated on November 06, 2023)

A retail investor can invest in following securities through primary issuance as well as in secondary market –

  1. Government of India (GoI) Treasury Bills
  2. Government of India (GoI) dated securities
  3. Sovereign Gold Bonds (SGB)
  4. State Government Securities (SGSs) [earlier called State Development Loans (SDLs)]
  5. Floating Rate Savings Bonds, 2020 (Taxable) – FRSB 2020 (T)

How to invest under Retail Direct Scheme?

The retail investor must open a Retail Direct Gilt (RDG) Account with RBI at  https://rbiretaildirect.org.in/#/

Who can open RDG Account?

For opening and maintaining a RDG Account, a retail investor needs the following –

  1. Rupee savings bank account maintained in India
  2. Permanent Account Number (PAN) issued by Income Tax Department
  3. Any Officially Valid Document (OVD) for KYC purpose
  4. Valid email id
  5. Registered mobile number

Non-Resident retail investors who are eligible to invest in Government Securities under the FEMA, 1999 are eligible to open RDG Account.

RDG Account can be opened singly / jointly with another retail investor who meets the eligibility criteria. 

An individual can open only one RDG Account. The second holder in a joint RDG Account may also open an individual RDG Account.

What are other features of RDG Account?

  1. Payments can be made through net-banking / UPI facility from the linked bank account.
  2. Securities held in RDG Account will be available for pledge / lien.
  3. Retail Direct Investors will have an online facility to gift government securities to other Retail Direct Investors.
  4. It is mandatory to provide nomination details for the RDG Account. An investor can nominate up to 2 persons who are eligible to invest in government securities.

What are the charges for maintaining RDG Account?

  1. No fee charged for opening and maintaining RDG Account.
  2. No fee charged for submitting bids in the primary auctions.
  3. Fee for payment gateway etc., as applicable, will be borne by the investor.

Whom to contact for any queries and complaints related to Retail Direct Scheme?

  1. Toll free phone number: 1800 267 7955 (between 9 am to 7 pm on any working day).
  2. E-mail id: support@rbiretaildirect.org.in
  3. Raise a request on the Retail Direct portal https://rbiretaildirect.org.in/#/.

What are the other methods for accessing the Retail Direct portal?

RBI has launched the Retail Direct Mobile App to provide retail investors a seamless and convenient access to the retail direct platform and provide ease of transacting in government securities (G-Secs). The mobile app can be downloaded from the Play Store for Android users and App Store for iOS users.


References

Reserve Bank of India. (2021, November 12). 'FAQ-Retail Direct Scheme'. Retrieved from https://www.rbi.org.in/Scripts/FAQView.aspx?Id=145

Reserve Bank of India. (2021, November 12). 'RBI Retail Direct Scheme'. Retrieved from https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=52548 and https://rbidocs.rbi.org.in/rdocs/content/pdfs/RBIRDS151121_AN.pdf

Reserve Bank of India. (2023, October 23). 'Subscription to Floating Rate Savings Bonds, 2020 (Taxable) through RBI Retail Direct Portal'. Retrieved from https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=56614

Reserve Bank of India. (2024, May 28). 'Launch of PRAVAAH, RBI Retail Direct Mobile Application and FinTech Repository'. Retrieved from https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=57990


Follow at - Telegram   Instagram   LinkedIn   Twitter

Labels:

Comments

Post a Comment

Popular Posts

Amendments in / additions to forex guidelines

Reserve Bank of India (RBI) has amended various forex guidelines. This article lists out some of the such recent amendments. What are the updates in the existing guidelines? Previous guidelines Revised guidelines Persons resident outside India that maintain a rupee account in terms of regulation 7(1) of Foreign Exchange Management (Deposit) Regulations, 2016 may purchase or sell dated Government Securities / treasury bills. The amount of consideration paid for the purchases shall be out of the funds held in the said rupee account. Persons resident outside India that maintain a rupee account in terms of regulation 7(1) of Foreign Exchange Management (Deposit) Regulations, 2016 may purchase or sell dated Government Securities / treasury bills and non-convertible debentures / bonds and commercial papers issued by an Indian company. The amount of consideration paid for the purchases shall be out of the funds held in the said rupee account. The balance...
Post a Comment
Read more

FX Global Code

Reserve Bank of India (RBI) has signed its renewed Statement of Commitment (SoC) to the FX Global Code.  What is FX Global Code? FX Global Code is a set of global principles of good practice in the foreign exchange market. The Code contains 55 principles that provide a common set of guidelines to promote the integrity and effective functioning of the wholesale foreign exchange market. The principles cover ethics, governance, execution, information sharing, risk management and compliance as well as confirmation and settlement. The establishment of the Code was facilitated by the Foreign Exchange Working Group (FXWG), which operated under the auspices of the BIS Markets Committee.  The Code was developed by a partnership between central banks and market participants from around the globe and was first published in 2017. The Code promotes a robust, fair, liquid, open, and appropriately transparent market in which a diverse set of market participants, supported by resilient infras...
Post a Comment
Read more

Nomination for demat accounts and mutual fund folios

Securities and Exchange Board of India (SEBI) had revised the guidelines on nomination for demat accounts and mutual fund folios.   Which entities are covered by the guidelines? The following regulated entities (REs) are covered by the guidelines – Asset Management Companies (AMCs) of Mutual Funds (MFs) and their Registrars to an issue and share Transfer Agents (RTAs)  Association of Mutual Funds in India (AMFI)  Recognized Depositories  Registered Depository Participants (DPs) What are the guidelines on nomination facility? Nomination shall be mandatory for single holding and optional for jointly held accounts / folios. However, an investor having single holding / account / folio can opt-out of nomination, either online or through physical / offline mode. In case a joint account / folio becomes single holding, post the demise of holders, either nomination or ‘opt-out’, is mandatory. Investors shall have the option to specify guardians when nominees are minors....
Post a Comment
Read more

Nomination Facility in Banks

Reserve Bank of India (RBI) has issued directions on nomination facility in deposit accounts, safe deposit lockers and articles kept in safe custody with the banks. What is the legal framework for nomination facility in banks? Banking Regulation Act, 1949 (BR Act) contain provisions on nomination facility in banks. Section 45ZA – Nomination for payment of depositors' money  Where a deposit is held by a banking company to the credit of one or more persons, the depositor / all the depositors together, may nominate one person to whom in the event of his / their death, the amount of deposit may be returned by the banking company. Where the nominee is a minor, the depositor shall appoint any person to receive the amount of deposit in the event of his death during the minority of the nominee. Section 45ZC – Nomination for return of articles kept in safe custody with banking company  Where any person leaves any article in safe custody with a banking company, such person may nominate ...
Post a Comment
Read more

Recognition of Self-Regulatory Organisations (SROs) for Non-Banking Financial Companies (NBFCs)

Reserve Bank of India (RBI) has invited applications for recognition of Self-Regulatory Organisations (SROs) for Non-Banking Financial Companies (NBFCs). What is the basis of Self-Regulatory Organisations (SROs) for Non-Banking Financial Companies (NBFCs)? Reserve Bank of India (RBI) had issued ‘ Omnibus Framework for recognition of Self-Regulatory Organisations for Regulated Entities of the Reserve Bank ’ dated March 21, 2024, wherein broad parameters, viz., objectives, responsibilities, eligibility criteria, governance standards, application process, etc., were specified. It was also stated that other sector-specific guidelines like number of SROs, membership, etc., shall be issued separately whenever a sectoral SRO is intended to be set up. RBI has now invited applications for recognition of SROs for the NBFC sector under the aegis of the aforesaid omnibus framework.  What are the membership criteria for the SRO for NBFCs? The SRO for NBFC sector is primarily envisaged for NBFCs...
Post a Comment
Read more