RBI Announces Mobile App To Help Retail Investors Easily Access Government Securities

Reserve Bank of India (RBI) Governor Shaktikanta Das announced the forthcoming launch of a mobile application specifically designed for the Retail Direct Scheme. This initiative, aimed to strengthen the ease with which individual investors can engage with government securities, promises a seamless transaction experience.

Launched back in November 2021, the Retail Direct Scheme is an innovative platform that enables individual investors to directly purchase government securities without the need for intermediaries. The scheme represents a pivotal step in demystifying the process of investing in government bonds, traditionally seen as a complex area of the financial market.

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Convenient For Retail Investors

The upcoming mobile application is anticipated to further simplify the investment process by providing direct access to the Retail Direct portal via smartphones. This move is expected to enhance convenience for retail investors and contribute to the expansion of the government securities (G-Sec) market.

Investors looking to partake in this scheme can establish a Retail Direct Gilt (RDG) Account directly with the RBI through an online portal. The scheme offers a wide array of investment options, spanning both primary and secondary markets. In primary issuances, individuals have the opportunity to participate in government security auctions on a non-competitive basis, adhering to the same procedural norms established for SGB issuance. The secondary market trading of these securities is facilitated through the NDS-OM platform, inclusive of specific segments catering to smaller trades and requests for quotes.

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Transactions Directly From Savings Accounts

The application is set to streamline the investment process further by enabling transactions to be carried out directly from investors’ savings accounts, using Internet banking or UPI for payments.

The RBI’s initiative has resonated with individual investors, as reflected in the significant uptick in the Retail Direct Scheme’s adoption rates. According to recent RBI data, the number of accounts opened via the RBI-RD portal surged by 62 per cent year-over-year to 1,09,212 by January 1, 2024, from 67,591 on January 2, 2023. Furthermore, the total value of primary market subscriptions by individual investors in government securities witnessed a staggering 178 per cent increase, climbing to Rs 3,548.25 crore as of January 1, 2024, from Rs 1,275.49 crore on January 2, 2023.