How do I buy government securities?
What is the RBI Retail Direct Scheme?
Individual investors may invest in Government Securities through the Retail Direct Scheme1. You can open a Gilt Securities Account - "Retail Direct Gilt (RDG)" account with the RBI under this scheme. Retail investors can use this account to buy and sell government securities via the online portal.
So, what’s the first step?
You must first create a Retail Direct Gilt (RDG) account.
By opening an RDG account, you will be able to buy and sell government securities in the primary market (auctions) as well as in the secondary market.
What types of government securities are available for purchase through the Retail Direct platform?
Government of India Treasury Bills (T-Bills)
Government of India dated securities (dated G-Sec)
State Development Loans (SDLs)
Sovereign Gold Bonds (SGB)
You can learn more about them in this post.
What is required to open the account?
To open an account, you must have the following items:
Your rupee savings bank account maintained in India with a net banking/UPI facility
Original PAN Card (For Video KYC)
Scanned Image of Signature(s) for Account Holder(s)
Valid email address.
The mobile number linked to your Aadhaar
How many Retail Direct Gilt (RDG) accounts am I allowed to open?
A person can only have one RDG account. A joint RDG account's second holder may also open an individual RDG account.
What types of transactions can I conduct through the RBI Retail Direct Portal?
The RBI Retail Direct Online Portal will make the following possible:
Purchasing government securities at primary auctions (non-competitive segment only).
Buying and selling government securities on the secondary market.
Purchasing and selling Sovereign Gold Bonds (SGBs) in the primary and secondary markets.
Investor services such as account statement, nomination facility, pledge/lien, gift transactions, grievance redressal, and managing profile such as contact details, etc.
What is the minimum investment amount for the Retail Direct platform?
The minimum amount/quantity of investment (as of Nov 12, 2021)
Rs 10,000 - Treasury Bills issued by the Government of India
Rs 10,000 - Government of India dated securities (dated G-Sec)
Rs 10,000 - in State Development Loans
Government Gold Bonds (SGB) - One gram of gold
How do I purchase securities through the Retail Direct platform?
There are two options for purchasing government securities through the Retail Direct platform:
By participating in primary auctions of dated G-Sec, T-Bills, and SDLs (Non-competitive segment only, i.e., by only entering the desired amount of securities, without entering a price). You can bid on Sovereign Gold Bonds (SGBs) during the subscription windows announced by the RBI on its website. You can find step-by-step instructions for bidding in auctions in the Retail Direct Portal's User Manual.
By submitting a buy quote through the secondary market portal.
Link
RBI announced the RBI Retail Direct facility in the Statement of Developmental and Regulatory Policies dated February 5, 2021.