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

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

Framework for recognition of Self-Regulatory Organisation (SRO) for Payment System Operators (PSOs)

Reserve Bank of India (RBI) had released the framework for recognition of Self-Regulatory Organisation (SRO) for Payment System Operators (PSOs). What is the need of Self-Regulatory Organisation (SRO) for Payment System Operators (PSOs)? Industry self-governance helps in industry-wide smooth operations and ecosystem development. RBI’s Payment and Settlement Systems Vision 2019-21 had, therefore, envisaged the setting up of an SRO for PSOs. Accordingly, the framework for recognition of SRO for PSOs was released in October 2020. What shall be the role of SRO for PSOs? An SRO is a non-governmental organisation that sets and enforces rules and standards relating to the conduct of member entities in the industry, with the aim of protecting the customer and promoting ethical and professional standards.  The SRO is expected to resolve disputes among its members internally through mutually accepted processes to ensure that members operate in a disciplined environment and even accept penal ...
Post a Comment
Read more

Reserve Bank of India Act, 1934 – Part-I – Preamble and Section 1 to 13

The Reserve Bank of India Act, 1934 provides the statutory basis of the functioning of the Reserve Bank of India (RBI). In a series of articles, we will briefly go through the provisions of RBI Act, 1934. This is the first article in the series. Preamble of the Act RBI to – Regulate the issue of bank notes. Keep reserves for monetary stability in India. Operate currency and credit system of the country to its advantage. The primary objective of the monetary policy is to maintain price stability while keeping in mind the objective of growth. Chapter I – Preliminary Section 1 – Short title, extent and commencement 1(1) – This Act may be called the Reserve Bank of India Act, 1934. 1(2) – The Act extends to whole of India. Chapter II - Incorporation, Capital, Management and Business Section 3 – Establishment and incorporation of Reserve Bank 3(1) – RBI to take over management of the currency from the Central Government. 3(2) – RBI to have perpetual succession, common seal, and shall by...
Post a Comment
Read more

Reserve Bank of India Act, 1934 – Part-III – Section 20 to 40

The Reserve Bank of India Act, 1934 provides the statutory basis of the functioning of the Reserve Bank of India (RBI). In a series of articles, we will briefly go through the provisions of RBI Act, 1934. This is the third article in the series.  Chapter III - Central Banking Functions Section 20 – Obligation of the Bank to transact Government business RBI shall undertake – To accept monies for account of the Central Government and to make payments up to the amount standing to the credit of its account, and to carry out its exchange, remittance and other banking operations. Management of the public debt of the Union. Section 21 – Bank to have the right to transact Government business in India The Central Government shall entrust RBI with – All its money, remittance, exchange and banking transactions in India, and shall deposit free of interest all its cash balances with RBI. The Central Government may carry on money transactions at places where RBI has no branches or agencies and m...
Post a Comment
Read more

Reserve Bank of India Act, 1934 – Part-II – Section 17 to 19

The Reserve Bank of India Act, 1934 provides the statutory basis of the functioning of the Reserve Bank of India (RBI). In a series of articles, we will briefly go through the provisions of RBI Act, 1934. This is the second article in the series.  Section 17 – Business which the Bank may transact RBI shall be authorized to carry on and transact the several kinds of business hereinafter specified, namely – 17(1) – Accept deposit without interest from the Central / State Government, local authorities, banks and any other persons. 17(1A) – Accept deposit, repayable with interest, from banks or any other person under the Standing Deposit Facility Scheme, as approved by the Central Board, for the purposes of liquidity management.   Bills of Exchange (B/E) & Promissory Note (PN) Bearing 2 or more good signatures, one of which shall be of B/E & PN arising out of Maturing within 17(2)(a) Purchase, sale and rediscou...
Post a Comment
Read more