By Administrator_ India
The Reserve Bank of India on Monday said retail investors can open an account with the central bank in few easy steps online to start trading in government bonds.
The online portal for retail investors will give access to the bond trading platform available for institutional investors as well, and the retail investors can also bid for bonds in primary auctions just as large institutions do.
The starting date for the ‘retail direct gilt’ account has not been announced by the RBI yet, but other modalities were spelt out.
Retail investors can register under the scheme and maintain an RDG account with basic KYC, such as a rupee savings bank account maintained in India, a permanent account number issued by the Income Tax Department, any officially valid document for KYC, valid email, and registered mobile number.
Non-resident retail investors will also be eligible to invest in government securities, but as per the rules set by Foreign Exchange Management Act. The RDG account can be opened singly or jointly with another retail investor who meets the eligibility criteria, the RBI said.
Investors can register on the online portal by filling up the online form and use the OTP received on the registered mobile number and email id to authenticate and submit the form. Upon successful registration, ‘Retail Direct Gilt Account’ will be opened and details for accessing the online portal will be conveyed through SMS or e-mail.