RBI to Launch Mobile App for Retail Direct Scheme for Investing in G-Secs
Moneylife Digital Team 05 April 2024
The Reserve Bank of India (RBI) has decided to launch a mobile app for its retail direct portal, which will allow investors to invest in different types of government securities (G-Secs), such as central government bonds, state government bonds, and treasury bills through their mobile devices. Currently, a retail investor can invest in these government securities by visiting and logging on to the retail direct website.
 
Shaktikanta Das, governor of RBI, says, "The RBI retail direct scheme was launched in November 2021. It is now proposed to launch a mobile app for accessing the retail direct portal. This will be of greater convenience to retail investors and deepen the G-Sec market."
 
The RBI retail direct scheme aims to enhance access to the government securities market for retail investors. 
 
It offers them a new avenue for directly investing in securities issued by the government of India and the state governments. Investors can open and maintain their government securities account online with the RBI, free of cost.
 
RBI's retail direct scheme gives individual investors access to maintain gilt accounts with the central bank and invest in government securities. The scheme enables investors to buy securities in primary auctions as well as buy or sell securities through the negotiated dealing system-order matching (NDS-OM) platform. 
 
"To further improve ease of access, a mobile application of the retail direct portal is being developed. The app will enable investors to buy and sell instruments on the go at their convenience. The app will be available for use shortly," RBI says in a release.
 
This portal was launched to bring access to government bonds within the reach of the common person by simplifying the process of investment. The retail direct scheme will allow retail investors to open pen a retail direct gilt (RDG) account with RBI, using an online portal (https://rbiretaildirect.org.in). 
 
The investors will have two avenues for making investments. The first is through the primary issuance of government securities, where they can participate in auctions by placing bids under the non-competitive scheme, following the procedural guidelines for sovereign gold bond (SGB) issuance. Secondly, investors can opt for the secondary market, where they have the flexibility to buy and sell government securities on the NDS-OM platform, which includes segments like 'Odd Lot' and 'Request for Quotes'.
 
RBI further says that an individual can also invest in sovereign gold bonds via the retail direct portal. RBI retail direct scheme aims to provide investors with a safe, simple, direct and secure platform. Investments can be made conveniently using a savings bank account through internet banking or a unified payments interface (UPI). 
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