Now with RBI retail direct portal, one can invest in Government securities easily. RBI has permitted retail investors to invest in Govt. securities through RBI retail direct scheme.
Retail investors can open the Gilt Securities Account “Retail Direct Gilt (RDG)” Account with the RBI. Thus enabling investors to buy Govt. bonds online without any intermediary.
One can buy and sell government securities through an online portal using RDG account.
Table of Contents
RBI Retail Direct Scheme – Invest Online
Using RBI Retail Direct Scheme individual retail investors can easily invest in Govt. securities such as treasury bills, GOI dated securities, Sovereign Gold Bonds (SGB), State development loans.
What are the advantages of RBI Retial Direct Scheme?
- You can invest in risk-free investment as issued by RBI itself. These investments are absolutely risk-free in nature.
- G sec offer a decent return for longer duration the duration can extend upto 40 years.
- G sec have reasonable liquidity because you can sell in the secondary market through retail direct portals.
- Investment in Govt. bonds help you to diversify your portfolio.
- Zero charges under retail direct scheme. RBI retail direct account is completely free of charges and does not involve any intermediry. This will reduce overall transaction charges for individual investors in terms of charges which they are otherwise required to pay for investing through aggregators or taking indirect exposure through mutual funds.
Which Govt. securities are available to invest through the retail direct platform
- Government of India treasury bills ( T bills)
- Government of India dated securities ( dated G Sec)
- State development loans (SDL)
- Sovereign gold bonds (SGB)
Minimum investment through the RBI Retail direct platform
- Government of India Treasury bills Rs 10000
- Government of India dated securities Rs 10000
- Loans Rs 0000
- Sovereign gold bonds -1 gram of gold
Eligibility to open RBI Retail Direct Account
Retail investors, as defined under the scheme, can register under the Scheme and maintain an RDG Account, if they have the following:
i) Rupee savings bank account maintained in India;
ii) Permanent Account Number (PAN) issued by the Income Tax Department;
iii) Any OVD for KYC purpose;
iv) Valid email id; and
v) Registered mobile number.
b. Non-Resident retail investors eligible to invest in Government Securities under Foreign Exchange Management Act, 1999 are eligible under the scheme.
c. The RDG account can be opened singly or jointly with another retail investor who meets the eligibility criteria
RBI Gilt Account Opening
Investors can register on the online portal by filling up the online form and using the OTP received on the registered mobile number and email id to authenticate and submit the form.
ii) Instructions issued under RBI-Know Your Customer (KYC) Direction, 2016, updated from time to time, will be adhered to during onboarding the investors. Upon successful registration, ‘Retail Direct Gilt Account’ will be opened and details for accessing the online portal will be conveyed through SMS/e-mail.
iii) RDG Account shall be available for primary market participation as well as secondary market transactions on NDS-OM
Primary market participation
iv) Participation and allotment of securities will be as per the non-competitive scheme for participation in the primary auction of government securities and procedural guidelines for SGB issuance.
v) Only one bid per security is permitted. On submission of the bid, the total amount payable will be displayed.
vi) Payment to the aggregator / receiving office can be made through either of the following ways:
a) Using the net-banking/UPI facility from the linked bank account, whereby funds will be debited at the time of submission of bids on the portal.
b) Using the UPI facility, whereby funds in the linked bank account can be blocked at the time of submission of bids on the portal which will be debited from this account on a successful allotment in the auction. Similar facilities through banks will be made available in due course.
c) Refund, if any, will be credited to the investor’s bank account as per the timelines specified by the aggregator.
vii) Allotted securities will be issued to the investors by credit to their RDG Account on the day of settlement.
Secondary market transaction-NDS-OM
viii)Registered investors can access the secondary market transaction link on the online portal to buy or sell government securities through NDS-OM (odd lot segment/RFQ).
Buy
ix) Payment can be made through either of the following ways:
a) Before the start of trading hours or during the day, the investor should transfer funds to the designated account of CCIL (Clearing corporation of NDS-OM) using net-banking/UPI from the linked bank account. Based on the actual transfer/success message, a funding limit (Buying Limit) will be given for placing ‘Buy’ orders. At the end of the trading session, any excess funds lying to the credit of the investor will be refunded.
b) Using the UPI facility, whereby funds in the linked bank account can be blocked at the time of placing the order which will be debited from this account on the day of settlement. Similar facility through banks will be made available
in due course.
x) Securities purchased will be credited to the RDG Account on the day of settlement.
Sell
xi) Securities identified for sale will be blocked at the time of placing order till the settlement of the trade.
xii) Funds from the sale transactions will be credited to the linked bank account on the day of settlement.
Non-Trade transactions – Value Free Transactions (VFT)
xiii)Transactions permitted under VFT guidelines issued by RBI on November 16, 2018, as amended from time to time, as applicable to retail investors, will be available under the scheme.
xiv) For such purposes, the investors should submit an application on the online portal.
Investor Service
Registered investors can use the online portal for the following investor services:
RDG- Account Statement
Transaction history and balance position of securities holdings in the Retail Direct Gilt Account can be obtained from the link provided on the website. All transaction alerts will be provided through e-mail/SMS.
Nomination facility
The nomination form in the prescribed format duly signed can be filled up and uploaded. There can be a maximum of two nominees. In the event of death of the registered investor, the securities available in the RDG Account can be transmitted to the RDG Account or any other Government securities account of the nominee on submission of the death certificate and transmission form.
Pledge/Lien
Securities held in the RDG Account will be available for pledge/lien.
Gift Transactions
Retail Direct Investors’ will have an online facility to gift government securities to other Retail Direct Investors.
Grievance redressal
Any query or grievances related to ‘Retail Direct’ Scheme can be raised on the portal
which will be handled/resolved by Public Debt Office (PDO) Mumbai, RBI.
Fee and charges
No fee will be charged for opening and maintaining a ‘Retail Direct Gilt account’ with RBI. No fee will be charged by the aggregator for submitting bids in the primary auctions. Fee for payment gateway etc., as applicable, will be borne by the registered investor.
