RBI Notifies Retail Direct Scheme

Reserve Bank of India has notified its retail direct scheme, under which retail participation will be encouraged in government securities

Reserve Bank of India (RBI) has notified its retail direct scheme, under which retail participation will be encouraged in government securities by providing prices and quotes to retail direct gilt (RDG) account holders, which will help them in trading in securities.

The scheme had been launched by the prime minister on November 12, 2021, where retail investors have the facility to open an online RDG account with RBI. These accounts can be linked to their savings bank accounts.

The RDG accounts of individuals can be used to participate in the issuance of government securities and secondary market operations through the screen-based NDS-OM.

NDS-OM or Negotiated Dealing Segment– Order Matching, refers to the RBI's screen-based, anonymous electronic order matching system for trading in government securities in the secondary market.