Deepening of G-Sec Market - Retail Investors' RDAG @RBI

Question 1

What is the Retail Direct Scheme?

Answer 1

A program launched by the Reserve Bank of India (RBI) in 2021 that allows retail investors to directly buy government securities (G-Secs).

Question 2

What kind of account is required to participate in the Retail Direct Scheme?

Answer 2

A Retail Direct Gilt (RDG) account on the RBI’s E-Kuber online platform.

Question 3

Who is eligible to open an RDG account?

Answer 3

Both resident Indians and non-resident Indians (NRIs).

Question 4

List the types of securities retail investors can buy directly through the Retail Direct Scheme.

Answer 4

Treasury Bills (T-Bills)
Government Securities (G-Secs) of the Union Government
State Development Loans (SDLs)
Sovereign Gold Bonds

Question 5

What is the major benefit of the Retail Direct Scheme for retail investors?

Answer 5

It allows them to buy G-Secs directly from the RBI, eliminating the need to go through mutual funds and thus avoiding commissions and fees charged by fund managers.