Reserve Bank of India (RBI) has finally issued the Retail Direct scheme to bring investments from individual investors into government securities on 12th July 2021. The scheme is a one-stop solution to facilitate investment in government securities (G-secs) by individual investors. Under this scheme retail investors can open and maintain a Retail Direct Gilt (RDG) account with the RBI free of cost through the dedicated online portal for this scheme.
Government securities (G-secs)
These are debt instruments issued by the government to borrow money. The two key categories are treasury bills – short-term instruments which mature in 91 days, 182 days, or 364 days, and dated securities – long-term instruments, which mature anywhere between 5 years and 40 years.
Sources : The Hindu