Edukemy Gazette

The 'RBI Retail Direct' scheme

The 'RBI Retail Direct' scheme

In News

Reserve Bank of India (RBI) has issued the 'RBI Retail Direct' scheme to bring investments from individual investors into government securities.


About the News

As part of the central bank's ongoing efforts to increase retail participation in government securities, the 'RBI Retail Direct' facility was announced in February 2021 along with the facility to open their gilt securities account ('Retail Direct') with the RBI.

Significance of the Scheme

  • The scheme will work as one-stop solution for retail investors interested in government securities. A dedicated bond-buying window for retail investors will democratize the ownership of government debt securities beyond banks and managers of pooled resources such as mutual funds.
  • This new investment will provide more avenues for investments for retail investors beyond the current bank fixed deposits, fixed income mutual funds and government small saving schemes like the public provident fund. The total volume of savings will expand in the coming years.
  • Direct retail participation would give competition to banks and other investment products.



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