Retail Direct Scheme was launched by Reserve Bank of India in November 2021. Under the scheme retail investors will be able to access government securities market.
Need
Low Retail Participation: G-sec market is dominated by institutional investors such as banks, mutual funds and insurance companies.
Huge Government Borrowing: The Government intends to borrow up to Rs.12 lakh crore by the March 31, 2022 for increased social and infrastructure programs etc. It will broaden the base of investors and provide funds to government.
Features
Retail investors will be able to invest in Central Government securities, Treasury Bills, State Development Loans and Sovereign Gold Bonds.
Investors can open a securities account directly with RBI, bid in the primary market and buy and sell securities in the market.
No fee will be charged for any of the services provided under the scheme.
