Retail investors can now invest directly in government securities. Retail investors can now maintain a Direct Gilt (RDG) account by registering under a special scheme of RBI. Through this they can invest directly in gilt funds. If an investor has a savings account (in Rs.), PAN, valid e-mail, KYC documents, registered mobile number in India, then he can open such an account.
Will be able to open RDG account in RBI
The RBI Retail Direct Scheme will act as a one-stop solution for those interested in investing in government securities. This scheme, made with the aim of promoting investment by the common people in government securities, was announced in February this year. Under this scheme, retail investors can now open and maintain Retail Direct Gilt (RDG) account on RBI’s online platform. This facility will be available free of cost through the dedicated online portal. However, investors will have to pay a payment gateway fee.
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Account can be opened in joint name
RBI notification states that registered investors can use this online portal for purchase of government securities issued primarily. Along with this, they can also use NDS-OM. NDS-OM is RBI’s screen based and anonymous electronic matching system, which trades in government securities in the secondary market. This facility of RBI will increase the participation of retail investors in government securities.
RBI has said that the launch of the scheme will be announced later. RDG account can be opened in your own name or joint name. The account is also opened in collaboration with any other investor. The ‘online portal’ will also provide the registered users with access to the primary issues of Government Securities and access to the NDS-OM.