RBI Retail Direct Scheme For Investment In Government-Securities- Know All About It

RBI Retail Direct Scheme For Investment In Government-Securities- Know All About It

Greatlgood

Classroom oi-Roshni Agarwal

|

Today Prime Minister along with RBI Chief Shaktikanta Das have formally unveiled the earlier notified scheme for G-securities’ investment by retail investor category. Termed as RBI Retail Direct scheme- the scheme has come up with a unique platform that will enable individual investors to access and invest in gilts. Gilts are nothing but government issued securities on which investors can earn the earmarked return.

RBI Retail Direct Scheme For Investment In Government-Securities- Know All About

RBI Retail Direct Scheme For Investment In Government-Securities- Know All About It

So, here’s all about the scheme:

” 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. Under the Scheme, retail individual investors will be able to open a Retail Direct Gilt (RDG) Account with the Reserve Bank of India, using an online portal (https://rbiretaildirect.org.in)”, said the RBI press release.

How can retail investor category invest in G-securities in India?

As stated above after the investor has opened RDG account with the RBI via the dedicated portal, investments can be mode via 2 modes:
1. Primary issuance of government securities:
Investors can place their bid in accordance with the non-competitive scheme for participating in primary auction of government securities and procedural guidelines for SGB issuance.
2. Secondary market: Investors can buy and sell government securities on NDS-OM (‘Odd Lot’ and ‘Request for Quotes’ segments).

How can the payment be made for G-securities investment?

Payments for the transaction in the RDG account can be done conveniently either via the savings account through net banking or via UPI.

For any kind of assistance, assistance is available over the platform, also users can call on the toll free number 1800-267-7955 (10am to 7pm) and email. Furthermore as per the release as of now there shall be charged no fee for the facilities rendered under the scheme. The scheme aims to provide a safe, simple, direct and secured platform to investors.

Advantage of this retail direct scheme for G-securities investment

G-securities or government issued securities are credit risk free and hence attract highest volumes. Thus far, investor get access to them via debt funds for which they would need to park for a minimum of 3 years in the growth option to get an advanatge of long term capital gains with 20% indexation.

Now with the sole and dedicated portal for such an investment, investors will have an option to invest in G-securities across tenures with flexible tenures and hence the ability to get regular pay-outs via risk-free coupon rate.

GoodReturns.in

Original news source Credit: www.goodreturns.in



You must be logged in to post a comment Login