RBI Retail Direct Scheme: Buying Government Securities Directly from RBI
Last updated: 2026-11-13 · MockMentor
The RBI Retail Direct Scheme, launched on 12 November 2021, lets individuals invest directly in Government securities through a free Retail Direct Gilt (RDG) account with the RBI. India is among the few countries to offer retail investors such direct access.
In one line: a free online account with the RBI to buy Government bonds without a broker or mutual fund.
At a glance
| Item | Details |
|---|---|
| Launched | 12 November 2021 |
| Account | Retail Direct Gilt (RDG) account; no fees |
| Who | Resident individuals and NRIs (under FEMA) |
| Needs | Indian savings account, PAN, KYC document, email and mobile |
| Instruments | T-bills, dated G-Secs, State Development Loans, SGBs, Floating Rate Savings Bonds |
| Mobile app | May 2024 |
How it works
- Primary market: retail investors bid through the non-competitive window and get securities at the weighted average auction price.
- Secondary market: trading on NDS-OM (Negotiated Dealing System, Order Matching) in the odd-lot segment, from ₹10,000.
- Securities are held in a Constituents' Subsidiary General Ledger (CSGL) account with the RBI.
Risks and tax
- No credit risk, but bond prices fall when rates rise, if sold before maturity.
- Interest is taxable at slab rates, with no TDS.
Possible exam questions
- How does retail participation deepen the Government securities market?
- Why might retail investors prefer G-Sec mutual funds over Retail Direct?
Complete notes in our courses: this page gives the essentials. The Super-Elite and Elite courses carry the full chapter with every update merged in, plus practice MCQs. Compare the courses.
More in Finance Ministry schemes
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- Atal Pension Yojana (APY)
- PM Vaya Vandana Yojana (PMVVY)
- PM Jeevan Jyoti Bima Yojana (PMJJBY)
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