RBI is now making it as easy as ordering food from Zomato to invest in government of India bonds also known as g-secs. G-secs are the safest investment in the country as you are owning a bond that is issued by the government of India.
RBI has also made the transaction process of G-secs as safe as the g-sec itself. Unlike equities, where you first transfer money to the broker, which is a counterparty risk by itself, in g-secs you transfer money to an entity that is directly under RBI. There is also no fees involved and its absolutely zero cost to transact in g-secs.
Invest in g-secs now and feel safe in your investments. You can start with as low as Rs 10,000.
RBI Retail g-sec notification
In order to increase retail participation in government securities, the RBI Retail Direct facility was announced by central bank in Feb 2021.
As per RBI notification on 12th Jul 2021, government securities include following securities:
· Government of India Treasury Bills
· Government of India dated securities
· State Development Loans (SDLs)
· Sovereign Gold Bonds (SGB)
Salient features of Retail Direct facility scheme
Ø Retail investors (individuals) will avail the facility to open and maintain the ‘Retail Direct Gilt Account’ (RDG Account) with RBI through an online portal.
Ø The online portal gives registered users to access both primary and secondary government bond market.
Ø Following documents will be required for registration:
· Rupee savings bank account maintained in India
· Permanent Account Number (PAN) issued by the Income Tax Department
· Any of Officially Valid Document defined under RBI-Know Your Customer (KYC) Direction, 2016
· Valid email id and registered mobile number
Ø Non-Resident retail investors eligible to invest in Government Securities under Foreign Exchange Management Act, 1999 are eligible
Ø The RDG account can be opened singly or jointly with another retail investor who meets the above eligibility criteria.
Procedure for Registration
Investors can register on the online portal by filling up the online form and use the OTP received on the registered mobile number and email id to authenticate and submit the form. Upon successful registration, ‘Retail Direct Gilt Account’ will be opened and details for accessing the online portal will be informed through SMS/e-mail.
Transaction in Government securities
Registered investors buy or sell government securities through NDS-OM by transferring funds to designated account of CCIL through net-banking/UPI from the linked bank account. Securities purchased will be credited to the RDG Account on the day of settlement.
Fee and charges
No fee will be charged for opening and maintaining ‘Retail Direct Gilt account’ with RBI. However, fee for payment gateway etc. as applicable, will be borne by the registered investor.
