New Delhi, Providing salaried class, pensioners and retail investors direct access to government securities market, Prime Minister Narendra Modi on Friday launched the Reserve Bank of India’s (RBI) Retail Direct Scheme.
Under the scheme, small individual investors could open Retail Direct Gilt Account’ (RDG Account) with the RBI and buy government securities.
The scheme seeks to widen the investor base for government securities by creating an ecosystem whereby retail investors can easily participate in the government securities market which has so far been dominated by institutional investors.
Besides increasing retail participation in the government securities, the scheme would deepen the bond market and allow a fair, market determined rates across the yield curve, noted Finance Minister Nirmala Sitharaman while speaking at the virtual launch event.
RBI Governor Shaktikanta Das said that by launching the Retail Direct Scheme India is setting an example of democratisation of the government securities market.