RBI Retail Direct is a revolutionary move that provides retail investors with direct debt market access. Previously, government bonds were only readily available to institutional players, but now every Indian investor can invest through a simple online process.
RBI Retail Direct Portal Explained: How to Buy & Sell Govt Bonds Online Without Demat Account
What is the RBI Retail Direct Portal?
RBI Retail Direct is a new online portal that allows retail investors to buy/sell Government of India bonds directly-without a broker, agent or Demat Account. Simply open a Retail Direct Gilt (RDG) account and deal directly with the RBI. Registration and transactions are 100% free.
How to open an RDG account?
To apply for an RDG account, you need:
- Savings bank account in India
- PAN number
- Aadhaar/Voter ID for KYC
- Valid email ID
- Registered mobile number
The account can be opened as a single or joint account. Even NRIs are eligible (if the criteria are met).
Which Government Bonds are available here?
On the portal, you can invest in various Government Securities (G-Secs), such as:
- Central Government Bonds
- State Government Bonds
- Treasury Bills
- Sovereign Gold Bonds (SGB)
- RBI Bonds
These bonds are available with long-term maturities ranging from 5 to 40 years. Interest is paid every 6 months (the coupon rate is fixed).
Access to both primary and secondary markets
- Primary Market: When bonds are first issued.
- Secondary Market: When bonds are listed for trading.
Through the RBI’s trading platform, NDS-OM, you can sell your bonds directly to other buyers through an anonymous order matching system—much like the stock market.
Which type of investor is it useful for?
- For senior citizens – long-term assured income
- For low-risk investors
- For portfolio diversification
However, the returns on short-term bonds are not very attractive and liquidity is currently low, so finding a buyer in urgent need may be difficult.
RBI Retail Direct is a revolutionary move that provides retail investors with direct debt market access. Previously, government bonds were only readily available to institutional players, but now every Indian investor can invest through a simple online process. The platform is new, so both liquidity and features will improve over time and adoption.
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