RBI Retail Direct Scheme – Invest in Govt Securities, Mobile App to be Launched Soon

RBI Retail Direct Scheme:- Individual investors can invest in government securities and maintain gilt accounts with the RBI under the RBI Retail Direct Scheme. Soon, the Reserve Bank’s new mobile app will allow people to directly purchase government bonds. The Reserve Bank of India (RBI) intends to release a smartphone application to make it easier for regular people to invest in government securities. Investors can purchase Treasury bills, central and state government bonds, and more with this app. The goal of the action is to increase private investment in government bonds. Read the article below to know more about the RBI Retail Direct Scheme

RBI Retail Direct Scheme

RBI Retail Direct Scheme 2024

The “RBI Retail Direct” scheme has been released, providing private investors with a one-stop shop to enable their investment in government securities. This scheme, which was introduced in November 2021, is expanded upon by the app. The Reserve Bank of India (RBI) Retail Direct program was developed as a one-stop shop to make it easier for private investors to invest in government securities.

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RBI Retail Direct Scheme Details in Highlights

Name of the schemeRBI Retail Direct Scheme
Launched byReserve Bank of India
Launched onNovember 2021
Objectiveto provide individual investors with a one-stop shop for government securities.
Modeonline
BenefitBuy Government Securities Easily
Official Websitehttps://rbiretaildirect.org.in/#/

Features of RBI Retail Direct Scheme

Following are the features of RBI Retail Direct Scheme

  • The “RBI Retail Direct” program has been released, providing private investors with a one-stop shop to enable their investment in government securities.
  • Through the plan, investors can purchase securities through primary auctions and trade them on the NDS-OM platform.
  •  A mobile version of the Retail Direct portal is in the process of development to enhance accessibility even more.
  • Investors will be able to purchase and sell instruments whenever and wherever they choose thanks to the app. Users would soon be able to use the app.
  • Investors will be able to purchase various government securities, including Treasury bills, state and federal bonds, and central government bonds, through the mobile app.
  • Retail investors can currently go on to the website to invest in these government assets.

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Benefits of RBI Retail Direct Scheme

The benefits of RBI Retail Direct Scheme are mentioned below:

  • Individuals who are retail investors will be able to open and maintain a “Retail Direct Gilt Account” (RDG Account) with the RBI.
  • An “Online portal” made available for the scheme’s purposes can be used to open an RDG account.

The following features will also be available to registered users through the “Online portal”:

  • Obtaining key government securities issuance access
  • NDS-OM accessibility.
Other benefits of RBI Retail Direct Scheme to investors
  • Since its introduction in November 2021, the RBI Retail Direct Scheme has allowed individual investors to invest in government securities and keep gilt accounts with the RBI. Through the Scheme, investors can purchase assets through primary auctions and trade them on the NDS-OM platform. A mobile version for the Retail Direct portal is in the process of development in order to enhance accessibility even more. Investors will be able to purchase and sell instruments whenever and wherever they choose thanks to the app. The application will soon be usable.”
  • Using a bank account that has been saved, payments for transactions can be made easily using internet banking via the Unified Payments Interface (UPI). Investors can get assistance and other support services via email, a toll-free phone number (1800-267-7955, 10 am to 7 pm), and the portal itself. Provisions for transaction and balance statements, a nomination facility, the ability to pledge or lien securities, and gift transactions are included in investor services. There are no costs associated with the facilities offered by the program.
Scope of Retail Direct Scheme

Through an online site, the RBI Retail Direct programme offers retail investors in the government securities market the following comprehensive services:

  • Create and keep up a “Retail Direct Gilt Account,”
  • Gain access to NDS-OM, and
  • The principal issuance of government securities.

Eligibility Criteria for RBI Retail Direct Scheme

Before applying for RBI Retail Direct Scheme, make sure you fulfill all the eligibility criteria mentioned below:

  • Investors should have Rupee savings bank account in India
  • Investor should have PAN
  • Investor should have any officially valid document for KYC such as Aadhaar, Passport, Voter ID etc.
  • Investor should have Valid Email ID
  • Investor should have Valid mobile number

The RBI Retail Direct Gilt Account can be opened either in single or joint holding mode. Even non-resident retail investors are eligible to invest in government securities.

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Services Offered via the RBI Retail Direct Portal

Retail investors can use the following features through the RBI Retail Direct Portal:

  • Retail Direct Gild Account can be opened and managed;
  • Bidding on G-sec auctions in the primary market is permitted; and
  • Sovereign Gold Bond investments are permitted.
  • Permit bond purchases and sales in the secondary market
  • Give investors access to account statements, nominations, pledges and liens, gift transactions, and coupon payments.

Registration Procedure for RBI Retail Direct Scheme 2024

The registration process is given below:

  • Investors can create an account on the website by completing the online form, authenticating it with the OTP they received on their registered email address and mobile number, and submitting it.
  • During the onboarding of investors, the RBI-Know Your Customer (KYC) Direction, 2016 instructions, as revised from time to time, will be followed. After a successful registration, a “Retail Direct Gilt Account” will be created, and an email or SMS will be sent with information on how to access the online portal.
  • On NDS-OM, the RDG Account will be accessible for both secondary market transactions and primary market participation.

Primary Market Participation

  • The non-competitive method for participation in the primary auction of government securities and the procedural guidelines for SGB issuance will control participation and the allocation of securities.
  • There can be only one bid per security. The entire price payable will be shown upon bid submission.
  • One of the following methods can be used to pay the aggregator or receiving office:
  • Using the linked bank account’s net-banking or UPI feature, where money is debited when bids are submitted on the platform.
  • By using the UPI feature, money in the associated bank account can be blocked at the moment of bid submission on the website; money will be taken out of this account upon the auction’s successful allocation. A comparable banking facility will be made available eventually.
  • Any refund will be credited to the investor’s bank account by the aggregator’s established timescales.
  • On the day of settlement, the investors will get the allotted securities by credit to their RDG Account.

Secondary Market Transaction —NDS—OM

  • The online portal’s secondary market transaction link is available to registered investors who wish to purchase or sell government securities using NDS-OM (odd lot segment/RFQ).
    Buy
  • You can pay using one of the methods listed below:
  • The investor should use net banking or UPI to transfer money from the associated bank account to the specified account of CCIL (Clearing Corporation of NDS-OM) before the start of trading hours or during the day. For placing “Buy” orders, a funding limit (Buying Limit) will be provided based on the actual transfer or success message. Any extra money left over to the investor’s credit after the trading session will be reimbursed.
  • By using the UPI feature, money that will be deducted from this account on the day of settlement can be stopped in the linked bank account at the time of order placement. A comparable banking facility will be made available eventually.
  • On the settlement day, the purchased securities will be credited to the RDG Account.
    Sell
  • Securities that are designated for sale will be blocked from the time an order is placed until the trade is settled.
  • On the day of settlement, money from the sale transactions will be credited to the associated bank account.

Non-Trade transactions – Value Free Transactions (VFT)

  • The plan will facilitate transactions that are allowed under the VFT guidelines that the RBI announced on November 16, 2018, as revised from time to time, concerning retail investors.
  • Investors should use the web portal to apply such objectives.
FAQ’s
The RBI’s anonymous, screen-based electronic order matching system for trading government securities in the secondary market is known as NDS-OM.

The RBI’s anonymous, screen-based electronic order matching system for trading government securities in the secondary market is known as NDS-OM.

What is the fees associated with starting a retail direct savings account?

 The RBI does not impose any fees for creating or keeping up a retail direct gilt account.

What is the full form of VFT?

VFT means ‘Value Free Transfer

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