The Reserve Bank of India has announced the 'RBI Retail Direct' scheme, that will give investors the facility of investing in government securities in one place. There will be no charge on account opening and its management.
To open this account, you do not need to go anywhere, just follow a few steps online. The central bank said that retail investors can open a Retail Direct Gilt Account (RDG Account) with it. To increase retail partnership in government securities, the government had also announced 'The RBI Retail Direct Facility'. Registered investors will have to pay a charge for its payment gateway.
Significantly, the objective of this plan is to improve the accessibility of government securities. Along with this, the online reach of retail investors will also be expanded. This includes both primary and secondary markets. According to RBI, single and joint accounts can be opened under this scheme. You can open your account with any other retail investor, provided that you meet the eligibility criteria for the same.
Talking about the documents required, retail investors need to register under the Retail Direct Plan and maintain an RDG account in India with a savings bank account, Permanent Account Number (PAN) or any officially valid document for KYC purposes. A valid email id and mobile number is required for this.
Under this scheme, the online portal will provide the registered user with access to NDS-OM in addition to the primary issue of government securities. NDS-OM refers to RBI's screen-based electronic order matching system for trading in government securities in the secondary market.