RBI's new app will let you buy government bonds directly
What's the story
The Reserve Bank of India (RBI) is preparing to launch a mobile application aimed at enhancing individual participation in government bonds. This announcement was made today by Governor Shaktikanta Das during the first monetary policy review of fiscal year 2025. The app is an extension of RBI's Retail Direct Scheme, which was initially introduced in November 2021.
App features
Mobile app to simplify access to the scheme
The upcoming mobile app is designed to simplify the process of creating a Retail Direct Gilt (RDG) Account with the RBI. Previously, this was achieved through a specialized online portal (https://rbiretaildirect.org.in). Das stated that the app will "enhance convenience for retail investors and foster deeper engagement with the G-sec (government securities) market." The aim is to streamline access and increase user interaction with the Retail Direct portal.
Investment options
Retail Direct Scheme offers diverse investment opportunities
The Retail Direct Scheme provides investment opportunities in both primary and secondary markets. In the primary market, investors can participate in government securities auctions via a non-competitive scheme, following procedural guidelines for Sovereign Gold Bond (SGB) issuance. On the other hand, the secondary market allows investors to trade government securities on the Negotiated Dealing System-Order Matching (NDS-OM) platform.
Transaction process
Seamless transactions and free services
The Retail Direct Scheme ensures smooth transactions with payments facilitated through savings bank accounts using Internet Banking or Unified Payments Interface (UPI). The services offered under this scheme include transaction and balance statements, nomination facilities, pledges or lien of securities, and gift transactions. Notably, these services are provided free of charge under the scheme.