Central government has launched RBI Retail Direct Scheme as part of continuing efforts to increase retail participation in government securities. RBI Retail Direct facility was announced in the Statement of Developmental and Regulatory Policies dated 5 February 2021. This scheme aims to improve ease of access by retail investors through online access to the government securities market – both primary and secondary – along with the facility to open their gilt securities account (Retail Direct) with RBI.
What is RBI Retail Direct Scheme 2024
RBI Retail Direct Scheme is a one-stop solution to facilitate investment in Government Securities by individual investors. The highlights of the RBI Retail Direct Scheme are as follows:-
- Retail investors (individuals) will have the facility to open and maintain the ‘Retail Direct Gilt Account’ (RDG Account) with RBI.
- RDG Account can be opened through an Online portal provided for the purpose of the RBI Retail Direct Scheme.
- The Online portal will also give the registered users the following facilities:-
- Access to primary issuance of Government securities
- Access to NDS-OM.
Reserve Bank of India (RBI) Retail Direct Scheme has been formulated as a one-stop solution to facilitate investment in Government Securities by individual investors.
Scope of RBI Retail Direct Scheme
RBI Retail Direct is a comprehensive scheme which provides the following facilities to retail investors in government securities market through an online portal:-
- Open and maintain a ‘Retail Direct Gilt Account’ (RDG Account)
- Access to primary issuance of Government securities
- Access to NDS-OM
Eligibility for RBI Retail Direct Scheme
Retail investors can register under the Scheme and maintain a RDG Account, if they have the following:-
- Permanent Account Number (PAN) issued by the Income Tax Department;
- Access to primary issuance of Government securities
- Any OVD for KYC purpose;
- Valid email id; and
- Registered mobile number
Non-Resident retail investors eligible to invest in Government Securities under Foreign Exchange Management Act, 1999 are eligible under RBI Retail Direct Scheme. The RDG account can be opened singly or jointly with another retail investor who meets the eligibility criteria.
RBI Retail Direct Scheme Online Registration Procedure
- Investors can register on the online portal https://www.rbiretaildirect.org.in/index.html by filling up the online form and use the OTP received on the registered mobile number and email id to authenticate and submit the form.
- 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.
- RDG Account shall be available for primary market participation as well as secondary market transactions on NDS-OM.
- Participation and allotment of securities will be as per the non-competitive scheme for participation in primary auction of government securities and procedural guidelines for SGB issuance.
- Only one bid per security is permitted. On submission of the bid, the total amount payable will be displayed.
- Payment to the aggregator / receiving office can be made through either of the following ways:-
- 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.
- 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 successful allotment in the auction. Similar facility through banks will be made available in due course.
- Refund, if any, will be credited to the investor’s bank account as per the timelines specified by the aggregator.
- Allotted securities will be issued to the investors by credit to their RDG Account on the day of settlement.
- 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
Payment can be made through either of the following ways:-
- Before 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 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.
- Using the UPI facility, whereby funds in the linked bank account can be blocked at the time of placing order which will be debited from this account on the day of settlement. Similar facility through banks will be made available in due course.
Securities purchased will be credited to the RDG Account on the day of settlement.
Sell
- Securities identified for sale will be blocked at the time of placing order till the settlement of the trade.
- Funds from the sale transactions will be credited to the linked bank account on the day of settlement.
- 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 RBI Retail Direct Scheme.
- For such purposes, the investors should submit an application on the online portal.
Investor Services
Registered investors can use the online portal for the following investor services:
- Account Statement – Transaction history and balance position of securities holdings in the Retail Direct Gilt Account can be obtained from the link provided. 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 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. No fee will be charged for opening and maintaining ‘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.
For more details, click on the official website at https://www.rbiretaildirect.org.in/index.html