Individuals can now directly purchase treasury bills, dated securities, sovereign gold bonds (SGBs) and State development loans (SDLs) from primary as well as secondary markets, thanks to the RBI Retail Direct Scheme launched by Prime Minister Narendra Modi on Friday. 

According to the scheme, retail investors (individuals) will have the facility to open an online Retail Direct Gilt Account (RDG Account) with the Reserve Bank of India (RBI). These accounts can be linked to their savings bank accounts. 

The RDG Accounts of individuals can be used to participate in the issuance of government securities (G-Secs) and secondary market operations through the screen-based NDS-OM. 

NDS-OM, a screen-based electronic anonymous order matching system for secondary market trading in G-Secs owned by RBI, is currently open only to institutions like banks, primary dealers, insurance companies and mutual funds. 

Earlier in the day, the RBI Retail Direct Scheme was launched in virtual mode by Mr Modi. 

“A significant milestone in the development of the G-Secs market, the Reserve Bank of India-Retail Direct (RBI-RD) Scheme will bring G-Secs within easy reach of the common man by simplifying the process of investment,” the central bank said in a statement today. 

Retail direct investors will have an online facility to gift G-Secs to other retail direct investors. 

Payments for transactions can be done conveniently using savings bank account through internet banking or Unified Payments Interface (UPI). Investors can obtain help and other support facilities on the portal itself and also through a toll-free telephone number 1800-267-7955 (10 am to 7 pm) and email, the statement has added. 

Investors’ services include provisions for transaction and balance statements, nomination facility, pledge or lien of securities and gift transactions. 

“No fees will be charged for facilities provided under the scheme,” the RBI has said and added that the scheme aims to provide a safe, simple, direct and secure platform to investors. 

Retail investors can register under the scheme and maintain an RDG account, if they have savings bank account maintained in India; PAN; any officially valid document for KYC purpose; valid email ID; and registered mobile number. Securities purchased will be credited to the RDG Account on the day of settlement.