The Reserve Bank of India (RBI) has announced that it is preparing to launch a mobile application to enhance individual participation in government bonds. This announcement was made by Governor Shaktikanta Das during the first monetary policy review of fiscal year 2025.
Streamlining Access to Retail Direct Scheme
The upcoming mobile app is an extension of the RBI’s Retail Direct Scheme, which was initially introduced in November 2021. The 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.
Governor Das highlighted that the app will “enhance convenience for retail investors and foster deeper engagement with the G-sec market,” referring to the government securities market. The goal is to streamline access and increase user interaction with the Retail Direct portal.
Investment Opportunities in Primary and Secondary Markets
The Retail Direct Scheme provides investment opportunities in both the primary and secondary markets. In the primary market, investors can participate in government securities auctions through a non-competitive scheme, following the procedural guidelines for Sovereign Gold Bond (SGB) issuance. This allows retail investors to invest in government securities alongside other institutional investors.
On the other hand, the secondary market enables investors to trade government securities on the Negotiated Dealing System-Order Matching (NDS-OM) platform. This provides flexibility for investors who want to buy or sell government securities based on market conditions.
Convenient 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). This allows investors to easily manage their investments and make transactions using familiar banking channels.
Under the scheme, various services are offered to retail investors free of charge. These include transaction and balance statements, nomination facilities, pledges or lien of securities, and gift transactions. This comprehensive range of services aims to make investing in government bonds more accessible and user-friendly for retail investors.
Overall, the launch of the mobile app and the extension of the Retail Direct Scheme demonstrate RBI’s commitment to enhancing individual participation in government bonds and promoting a deeper engagement with the G-sec market.
