RBI Retail Direct Scheme
RBI Retail Direct Scheme
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Others Retail Direct Scheme is a one-stop solution to facilitate investment in Government Securities by individual investors. Under this
scheme individual retail investors can open a Gilt Securities Account – “Retail Direct Gilt (RDG)” account with RBI. Using this account,
Payment Systems retail investors can buy and sell government securities through the online portal – https://rbiretaildirect.org.in
Opening an RDG account will allow individuals to buy Government securities directly in the primary market (auctions) as well as
buy/sell in the secondary market. For the retail investor, Government securities offer an option for long term investment. The
advantages for retail investors can be listed as under:
i. G-sec are risk free: G-sec in the domestic market context are risk free and carry no credit risk.
ii. G-sec offer decent yields for longer duration. G-sec yield curve extends up to 40 years. With Government issuing
securities at different points on the yield curve, G-sec offer an attractive option for savers who need low risk investment
options for longer durations.
iii. G-sec offer prospect of capital gains: As there is an inverse relationship between bond price and interest rate, there is a
prospect of capital gains when the interest rates moderate. One, however, must be conscious of market risks that could
result in losses in case the interest rate cycle reverses.
iv. G-sec have reasonable liquidity: G-sec have reasonable liquidity and can be transacted on NDS-OM. With the introduction
of Retail Direct Portal, retail investors can now participate easily in primary and secondary market.
v. G-sec help to diversify portfolio: Investments in government securities would help in portfolio diversification and
consequently reduce risk for retail investors.
vi. Zero charges under Retail Direct Scheme: Retail Direct Account is completely free of charge and does not involve any
intermediary. It would reduce overall transaction charges for individual investors in terms of the charges which they are
otherwise required to pay for investing through aggregators or taking indirect exposure through mutual funds.
3. What are the kinds of Government securities that I can invest in through the Retail Direct platform?
iii. Any Officially Valid Document (OVD) for Know Your Customer (KYC) purpose.
iv. Valid email id.
b. Non-Resident retail investors eligible to invest in Government Securities under Foreign Exchange Management Act, 1999.
5. How many Retail Direct Gilt (RDG) accounts can I open?
An individual can open only one RDG account. The second holder in a joint RDG account may also open an individual RDG account.
6. Whether Retail Direct Gilt (RDG) account can be opened in a joint name?
The RDG account can be opened singly or jointly with another retail investor who meets the eligibility criteria.
7. What are the facilities available on the RBI Retail Direct Portal?
The RBI Retail Direct Online Portal will facilitate the following:
c. Buying and selling Sovereign Gold Bonds (SGBs) in the primary and secondary market. Top
d. Investor services such as account statement, nomination facility, pledge/lien, gift transactions, grievance redressal, and
managing profile like contact details etc.
8. What is the procedure for opening a Retail Direct Gilt (RDG) account?
a. Eligible Investors may login to https://rbiretaildirect.org.in and register using the Registration link to begin the account
opening process.
b. To open an account, the investor will have to furnish details like full name, PAN, mobile number, e-mail address, residential
address, savings bank account number, etc. and specify a login name. Mobile number and email address will be
Banking authenticated using OTP and all further customer requests and services will be OTP based.
Currency
c. For joint accounts, the PAN, e-mail address and phone number of both holders will be required.
Foreign Exchange
d. Once these details have been provided, you will get a reference number to track your application.
Government Securities Market
e. You may now initiate your Know Your Customer (KYC) verification process.
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f. In case of joint accounts, the KYC verification will be done for both the holders.
Others g. It will be mandatory for the investor to fill in the nomination details at the time of opening of the account.
Payment Systems h. The savings bank account of the customer will be linked to their Retail Direct account by crediting a token amount into their
bank account and verifying the same.
i. Once the KYC is successful, an RDG account will be opened in the name of the investor(s).
j. Information related to account number, login id & password to access the Online Portal will be made available to the
customer on their registered e-mail id.
k. In case of KYC failures, the individual can make new application or resubmit application after making necessary changes.
9. What documents do I need for opening a Retail Direct Gilt (RDG) account?
The following documents are mandatory to open the RDG account
i. PAN
In addition, you may be required to provide an address proof to complete your Know Your Customer (KYC) process. The following
documents are accepted as an address proof - Passport, Driving License, Voter ID, Aadhaar, NREGA job card duly signed by the
State Government, Letter issued by the National Population Register containing your name and address.
10. Can I change the email id or phone number linked with my Retail Direct Gilt (RDG) account later?
Yes, you can change your registered mobile number and e-mail id on the Retail Direct portal.
11. Can I open a Retail Direct Gilt (RDG) account if I have already invested in Government securities through other
channels?
Yes.
12. What is the cost of opening and maintaining Retail Direct Gilt (RDG) Account?
RDG Account can be opened and maintained with RBI free of cost.
Know Your Customer (KYC) related queries
13. What are the ways of doing my KYC verification for Retail Direct Gilt (RDG) account?
There are two ways of doing KYC verification – CKYC based and video KYC.
i. Enter your PAN card number and date of birth to retrieve details available in CKYC.
ii. Provide address details, scanned copy of your signature, bank account details and nominee details.
iii. Authenticate the user agreement form using Aadhaar by submitting the OTP sent on your mobile number linked to
Aadhaar.
v. Authenticate the user agreement form by Aadhaar using the OTP sent on your mobile number linked to Aadhaar. Top
To link your bank account, you can either upload a picture of your bank account’s cancelled cheque from where the system will
Banking automatically read the required details or enter the bank account details yourself. The system will then transfer a token amount to your
Currency account. Confirming this token amount on the next screen will lead to automatic verification and linking.
20. What if my KYC process does not get completed in one session?
Foreign Exchange
Your progress during KYC verification process will be saved so that you do not have to re-enter the details if you start again. The
Government Securities Market saved progress can be accessed using the link in the email which you received after registration, intimating you about KYC initiation.
However, when you start again, you will have to keep clicking on ‘Next’ to move ahead without re-entering the previously saved
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details.
Others Nomination related queries
Payment Systems 21. Is nomination compulsory for opening Retail Direct Gilt (RDG) Account?
Yes.
Yes. A Government securities holder may nominate any one as a nominee provided that the nominee should be eligible to invest in
the particular loan as per the specific Government Loan Notification.
25. What happens if one of the joint nominees to a Government security dies?
In such cases where a nomination in respect of a Government security has been made in favour of two and either or any of the
nominees is dead, the surviving nominee will be entitled to the Government security and payment thereon.
Investment and Account holdings related queries
S.
Government security Primary auction usually held on
No.
1 Government of India Treasury Bills (T-Bills) Wednesdays
Government of India dated securities (dated
2 Fridays
G-Sec)
3 State Development Loans (SDLs) Tuesdays
Weekly windows announced by RBI in its press
4 Sovereign Gold Bonds (SGB)
release
27. What are the risks of investing in Government Securities?
G-Secs are credit risk free instruments in domestic currency. However, there are market risks if you sell before maturity. You may refer
to ‘Government Securities Market- A primer’, published on RBI website, to understand various risks associated with government
securities.
The returns on Government securities are dependent on various features of the securities. You may refer to ‘Government Securities
Market- A primer’, published on RBI website, to understand the factors affecting the returns on government securities.
29. What is the minimum amount for investment through Retail Direct platform?
You can sell securities by placing an offer (sell) order in the secondary market portal. You must have the security in your account
before you can sell that security.
33. What is the process for bidding in primary auctions through the Retail Direct platform?
i. After logging into the Primary Market Retail Direct platform, select the ‘Primary Market’ option beside the Dashboard, at the
top of the page.
ii. Select a security to bid from the ‘Auction Watch’ and enter the bid amount in the ‘Bid Entry’ window.
iii. Individuals can fund their bid either at the time of bidding or at a later time, but before the closure of bidding/subscription
window. Bids which are not funded as on the date of submission of bids to RBI will be cancelled.
iv. For making payment for the bids, retail clients can use services like UPI (Transfer or Block) and Net Banking to transfer
funds to a designated current account using Payment Gateways linked to the Online Portal.
v. Based on the allotment advice received as a part of the auction result, the allotments will be made to the individual
investors.
vi. In case of full allotment, each bidder will be allocated the entire Face Value for which bids were submitted. In case of
partial allotment, a pro-rata allotment will be made to the bidder based on the partial allocation percentage determined in
the auction.
For further details on the biding process, you may refer to the User Manual in the Help section of the Retail Direct Portal.
You can submit only one final bid per security in each primary auction of dated G-Sec, T-Bills and SDLs.
35. What amount should I pay at the time of placing a bid in primary auctions?
For dated G-Sec, T-Bills and SDLs, the amount per unit will be based on the indicative price of the security, the accrued interest and a
mark-up.
For SGBs, the funding will be based on the Issue Price declared by RBI for that particular issue.
In the non-competitive segment of primary auctions, the price at which the securities are allotted is the weighted average price of the
successful competitive bids in the auction. Since this weighted average price can be calculated only after the auction is over, the price
of the security through the non-competitive segment is unknown during the time of bidding. To cover for this uncertainty, a markup is
applied in case the weighted average price comes out to be higher.
39. When will I get the refund for the excess markup?
The excess markup, i.e., the price charged at the time of placing the bid, minus the actual allotment price, will be refunded to your
linked bank account within two business days from the date of auction.
40. Can I use a different bank account other than the one registered with the Retail Direct portal for funding my bids?
No. However, if you want to use a different bank account, you can replace the linked bank account through the Retail Direct portal.
41. Can I place a competitive bid (i.e., a bid at my desired price) in the primary auctions of dated G-Sec, T-Bills and SDLs?
No. The Scheme is designed to facilitate only Non-competitive participation (i.e., bids without choosing your own price) by individuals.
However, if one desires to place a competitive bid, he/she may contact a Bank/Primary Dealer/any other authorized institution.
42. What other fees/ charges are applicable?
No fee will be charged for opening and maintaining the Retail Direct Gilt (RDG) account with RBI. No fee will be charged by RBI at the
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time of submission of bids in primary auctions. However, applicable payment gateway charges will have to be borne by the investor
while funding his/her purchases.
43. When will the securities be credited in my Retail Direct Gilt (RDG) account?
Securities will be credited in your Retail Direct account on the settlement date, which is typically one working day after the trade
date/auction date.
44. Will I get a physical certificate on the purchase of securities through the Retail Direct platform?
No. However, the securities purchased will reflect in the holdings statement in your Retail Direct account.
i. Toll free phone number: 1800 267 7955 (between 9 am to 7 pm on any working day).
For additional details on using the Retail Direct portal, you may refer to the User Manual in the Help section of the Retail Direct Portal.
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