rbi direct scheme

On Friday, November 12, Prime Minister Narendra Modi launched the RBI Retail Direct Scheme. This scheme will allow investors to buy and sell government bonds and securities online.

The portal for buying and selling government securities is rbiretaildirect.org.in

Here are the answers to all possible questions and information about the new platform.

Who is eligible to open the RDG account?

The account can be opened individually or jointly with another retail investor. To open an RDG account, a retail investor must have the following criteria (notice issued by RBI on July 12, 2021)

– A rupee-denominated savings bank account in India

– A PAN issued by the Income Tax Department

– Any officially valid document like Aadhaar, Voter ID for KYC purposes

– Valid email ID

– Registered mobile number

What is the process to register on the RBI Retail Direct portal?

First, fill out the online form on the portal. To authenticate the information, use the OTP received in the registered mobile phone number and email ID. If you register successfully, a “Gilt Direct Retail Account” will be opened and the details for accessing the online portal will be sent to you via SMS/email.

What are the charges for opening an RDG account?

There will be no fee to open and maintain the “Gilt Direct Retail Account”. The same goes for the aggregator for submitting bids in primary auctions. Retail investors only need to pay the payment gateway charges, as applicable.

How to buy or sell government securities through RBI Retail Direct?

Retail investors can buy government securities on the primary market, where government bonds are issued for the first time, or buy/sell government bonds, which are already listed on the secondary market.

Things to Remember Before Buying Government Securities in the Primary Market

  • Submit only one bit per security
  • Payment to the aggregator/receiving office can be made by using the net banking/UPI function from the linked bank account
  • The funds will be debited at the time of submission of offers on the portal
  • ASBA facility is also available to retail investors

Things to Remember Before Buying and Selling Government Bonds on the Secondary Market

  • Registered investors can access the secondary market transactions link on the online portal to buy or sell government securities through NDS-OM
  • The purchased securities will be credited to the RDG Account on the settlement day
  • The values ‚Äč‚Äčidentified for sale will be blocked at the time of placing the order until the settlement of the operation
  • Funds from the sale transactions will be credited to the linked bank account on the day of settlement.

CONTENT BY- Brainware University