How To Buy Govt Bonds By Opening Gilt Account With RBI?

Individual investors now have access to the central bank's "Retail Direct Gilt (RDG) account," which allows them to buy and sell bonds. It will serve as a one-stop site for individual investors looking to invest in government securities.

The Reserve Bank of India (RBI) launched a separate bond-buying window for regular investors on Monday, aiming to democratize government debt securities ownership beyond banks and managers of pooled resources like mutual funds.

Retail Direct Gilt Account (RDG Account) with RBI 

Retail investors will be able to open and maintain a 'Retail Direct Gilt Account' with RBI. The account can be opened through an 'Online portal' created specifically for the plan. Registered users will also be able to access primary issuance of government securities as well as NDS-OM through the 'online portal.' NDS-OM stands for the Reserve Bank of India's screen-based, anonymous electronic order matching system for secondary market trading in government securities.

These are the securities which investors can invest:
1. Government of India Treasury Bills
2. Government of India dated securities
3. Sovereign Gold Bonds (SGB)
4. State Development Loans (SDLs).

Eligibility: Who can open the RDG Account?

Retail investors are eligible to register and maintain an RDG Account if they meet the following criteria:

 
 In India, a rupee savings bank account is maintained
 
The Income Tax Department's Permanent Account Number (PAN)
 
Any OVD used for KYC;
 
A working email address
A valid mobile phone number.

The scheme is open to non-resident retail investors who are authorized to invest in government securities under the Foreign Exchange Management Act of 1999.
 
 An RDG account can be formed alone or in partnership with another retail investor who meets the qualifying requirements.

How To Open and Register For RDG Account?

Investors can register on the web portal by completing the online form and authenticating and submitting the form using the OTP sent to the registered cellphone number and email address.
 
 During the onboarding of investors, the 'Retail Direct Gilt Account' will be opened after successful registration, and instructions for accessing the web portal will be sent through SMS/e-mail.
 
 On NDS-OM, the RDG Account will be accessible for both primary and secondary market transactions.

Fees and Charges

• The RBI will not charge a fee for opening and maintaining a "Retail Direct Gilt account."
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• The aggregator will not charge a fee for submitting bids in the primary auctions.
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• The registered investor will be responsible for any fees associated with payment gateways and other similar services.

 

What are the services offered? 

The registered investors can opt for the following investment services:
 a. Financial Statement
 The link provides transaction history and the balance position of securities holdings in the Retail Direct Gilt Account. All transaction alerts will be sent by e-mail or SMS.
 b. Provision for nominations
 You can fill up and upload the nomination form in the appropriate format, which must be signed. A maximum of two nominations is allowed. 

C. Pledges and liens on securities stored in the RDG Account will be possible.
 
 d. Transfers of Gifts
 
 Retail Direct Investors will be able to give government securities to other Retail Direct Investors through an online platform.
 
 e. Resolution of complaints
 
 Any question or complaint about the 'Retail Direct' Scheme can be sent using the portal, and it will be handled and resolved by the Public Debt Office (PDO) Mumbai, RBI.