RBI retail direct scheme: PM Modi to launch RBI direct scheme for investors on Nov 12

The launch comes as a move to open up India’s sovereign bond market to individual buyers as it seeks to widen the investor base to fund the government’s massive borrowing programme.

New Delhi: In order to increase retail participation in government securities, Prime Minister Narendra Modi will launch the ‘RBI Retail Direct Scheme’ for investors on Friday, November 12.

The launch comes as a move to open up India’s sovereign bond market to individual buyers as it seeks to widen the investor base to fund the government’s massive borrowing programme.

The RBI Retail Direct’ facility was announced in February this year for improving ease of access by retail investors through online access to the government securities market – both primary and secondary – along with the facility to open their gilt securities account (‘Retail Direct’) with the RBI.

RBI Governor Shaktikanta Das had first flagged this initiative in a February policy review while calling it a “major structural reform”. In July, the central bank said investors will have access to bidding in primary auctions as well as the central bank’s trading platform for government securities called Negotiated Dealing System-Order Matching Segment, or NDS-OM.

The ‘RBI Retail Direct’ scheme is a one-stop solution to facilitate investment in Government Securities by individual investors. Under the scheme, retail investors (individuals) will have the facility to open and maintain the ‘Retail Direct Gilt Account’ (RDG Account) with RBI.

https://www.timesnownews.com/business-economy/economy/article/rbi-retail-direct-scheme-pm-modi-to-launch-rbi-direct-scheme-for-investors-on-nov/830656

https://www.bloomberg.com/news/articles/2021-11-10/india-is-opening-up-government-bond-market-to-retail-investors