Prime Minister Narendra Modi will launch the 'RBI Retail Direct Scheme' on Friday to allow retail investors to invest easily in government securities.
As per the scheme, investors will be able to directly invest in government securities.
A circular from the Reserve Bank of India said that it would allow retail investors to open and maintain their government securities account free of cost.
The initiative was first flagged off by RBI Governor Shantikanta Das in February 2021. The governor has called it a 'major structural reform'.
The RBI announced that investors interested would have to open and maintain the ‘Retail Direct Gilt Account’ (RDG Account) with RBI.
The RDG account could be opened by filling up the online form and use the OTP received on the registered mobile number and e-mail id to authenticate and submit the form.
Payment can be made through net-banking/UPI facility from the linked bank account. Refund, if any, will be credited to the investor’s bank account as per the timelines specified by the aggregator.