The Reserve Bank of India (RBI) has launched ‘the RBI Retail Direct’ scheme for retail investors, through which they can directly buy and sell government securities (G-Secs), both primary and secondary. The bond-buying window was opened to increase retail participation in G-Secs and democratize ownership of G-Secs beyond the managers of pooled resources such as banks and mutual funds. The date of commencement of the scheme will be announced later.
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Highlights of the ‘RBI Retail Direct’ scheme:
- The RBI Retail Direct scheme is a one-stop solution to facilitate investment in Government Securities (G-Secs) by individual investors.
- This dedicated bond-buying window is a part of RBI’s effort to increase retail participation in government securities.
- The scheme also provides the facility to Retail investors (individuals) to open and maintain the ‘Retail Direct Gilt Account’ (RDG Account) with RBI.
- Under this scheme, retail investors are able to open and maintain their gilt securities account named ‘Retail Direct Gilt Account’ (RDG Account) through a ‘With RBI’online portal‘.
Important takeaways for all competitive exams:
- RBI 25th Governor: Shaktikant Das; Headquarters: Mumbai; Founded: 1 April 1935, Kolkata.