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

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

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

Lending against Gold and Silver collateral

Reserve Bank of India (RBI) has issued directions on lending against the collateral of gold and silver. To whom are the directions applicable? The directions are applicable to the following regulated entities (REs) – Commercial Banks (including Small Finance Banks, Local Area Banks and Regional Rural Banks, but excluding Payments Banks). Primary (Urban) Co-operative Banks (UCBs) & Rural Co-operative Banks (RCBs), i.e., State Co-operative Banks (StCBs) and Central Co-operative Banks (CCBs). Non-Banking Financial Companies (NBFCs), including Housing Finance Companies (HFCs). Which loans are covered under the directions? The directions shall apply to all loans offered by an RE for the purpose of consumption or income generation (including farm credit) where eligible gold or silver collateral is accepted as a collateral security. What is eligible collateral? Eligible collateral means the collateral of jewellery, ornaments or coins made of gold or silver. A lender shall not grant any ad...
Post a Comment
Read more

Investments in Non-SLR instruments by State Co-operative Banks (StCBs) and Central Co-operative Banks (CCBs)

Reserve Bank of India (RBI) has issued directions on investments in non-SLR instruments by State Co-operative Banks (StCBs) and Central Co-operative Banks (CCBs). What is the prudential limit for non-SLR investment by StCBs and CCBs? Total Non-SLR investments shall not exceed 10% of the total deposits of a bank as on March 31 of the preceding financial year. Which instruments are permitted for non-SLR investments by StCBs and CCBs? StCBs / CCBs may invest in the following instruments – "A" or equivalent and higher rated Commercial Papers (CPs), debentures and bonds. Units of Debt Mutual Funds and Money Market Mutual Funds. Shares of Market Infrastructure Companies (MICs), e.g. Clearing Corporation of India Ltd. (CCIL), National Payments Corporation of India (NPCI), Society for World-wide Inter-bank Financial Telecommunication (SWIFT). Share capital of Shared Service Entity (SSE) set up by National Bank for Agriculture and Rural Development (NABARD) for StCBs and CCBs. Which a...
Post a Comment
Read more

Directions on Regulation of Payment Aggregators (PAs)

Reserve Bank of India (RBI) has issued directions on regulation of Payment Aggregators (PAs). Who is Payment Aggregator (PA)? Payment Aggregator (PA) is an entity that facilitates aggregation of payments made by customers to the merchants through one or more payment channels through the merchant’s interface (physical / virtual) for purchase of goods, services or investment products, and subsequently settles the collected funds to such merchants.  What are the categories of PA? PA – Physical (PA-P) – PA that facilitates transactions where both the acceptance device and payment instrument are physically present in close proximity while making the transaction. PA – Cross Border (PA-CB) – PA that facilitates aggregation of cross-border payments for current account transactions, that are not prohibited under Foreign Exchange Management Act, 1999 (FEMA), for its onboarded merchants through e-commerce mode. The 2 sub-categories of PA-CB are – PA-CB facilitating inward transaction (i.e. tr...
Post a Comment
Read more