Investment in the securities market is rising, even as volatility keeps investors on their toes. However, during uncertain times, many people naturally prefer safer, more stable options, especially those backed by the government. Now imagine a single trusted platform where you can explore risk-free securities and invest directly, without any brokers influencing your choices. Sounds convenient, right? That is exactly what RBI Retail Direct offers, i.e., a centralised portal that lets you buy and sell Government securities with ease and transparency. Curious to know more? Read on to know all about the RBI Retail Direct portal and the securities you can access here for your portfolio.
The RBI Retail Direct Scheme is an initiative launched by the Reserve Bank of India (RBI) in November 2021 to make government securities easily accessible to everyday investors. Earlier, buying G-Secs was mostly done by big institutions and required going through banks or brokers. To remove these barriers, the RBI created a simple, online, no-middleman platform where any resident individual can open a Retail Direct Gilt (RDG) account directly with the RBI. This scheme aims to encourage more people in India to invest in safe, government-backed instruments by providing them a transparent, convenient, and cost-free way to purchase Treasury Bills, Government Bonds, sovereign gold bonds, and more. In short, the scheme was created to democratise access to G-Secs, promote financial inclusion, and help investors build a stable, low-risk portion of their portfolio with complete trust and ease.
The RBI Retail Direct portal offers the RBI Retail Direct Scheme, which allows investors to invest in government-backed securities through a straightforward and transparent process. The prime features of the RBI Retail Direct Scheme are explained below.
The primary feature of this scheme is that it provides retail investors with direct access to Government securities without needing a broker, bank dealer, or middleman. Investors can buy and sell G-Secs directly from the RBI, which ensures transparency, trust, and complete control over their investments. This simplifies the process and eliminates any additional charges or biases that intermediaries might add.
Under this scheme, investors can open a Retail Direct Gilt (RDG) Account completely free of cost. There are no account opening fees, no maintenance charges, and no hidden costs. Since the account is held directly with the RBI, investors do not have to worry about brokerage fees or demat-related charges. This makes investing in government-backed securities more affordable for small and first-time investors.
The portal enables investors to invest in various types of Government securities, giving them a broad choice to build a low-risk portfolio. Investors can access securities like
Treasury Bills (short-term) - T-Bills are short-term government borrowings for 91, 182, or 364 days. They do not pay interest but are sold at a discount and redeemed at full value, providing investors with a profit. The minimum investment is Rs. 25,000. These are good for parking money for a short period with low risk.
Long-term Government Bonds - These are long-term loans taken by the Government of India, with maturities ranging from 5 to 40 years. They pay a fixed or floating interest rate twice a year. Investors can start with as little as Rs. 10,000, and there is no maximum limit. These are suitable for those looking for stable, long-term returns.
State Development Loans (SDLs) - SDLs are long-term securities issued by State Governments to raise funds. They typically mature in around 10 years, and investors can start with a minimum of Rs. 10,000. These offer slightly higher returns compared to central government bonds while still being considered very safe.
Sovereign Gold Bonds (SGBs) - SGBs are digital gold investments issued by the Government of India. They are valued in grams of gold and offer a safe alternative to holding physical gold. Investors can buy at least 1 gram, up to 4 kg per year. They have an 8-year maturity and provide 2.5% annual interest, along with the benefit of gold price appreciation.
This variety helps investors match investments with their goals, whether it’s short-term parking of funds or long-term stability.
The platform is similar to any modern investment portal. Investors can participate in primary auctions (buying directly when the RBI issues new securities) or trade in the secondary markets (buying or selling existing securities). Everything is done online, right from placing bids, viewing holdings, to tracking payments. This makes the whole process convenient and user-friendly.
The RDG account is linked to the investor’s existing savings account at the bank. All payments for purchases, as well as interest or redemption amounts, are handled automatically through this link. Whenever the government pays interest or repays the bond amount, the money is deposited directly into the bank account without requiring any follow-up.
Since the RBI manages the scheme and deals only with government-issued securities, it offers the highest level of safety for conservative investors. All transactions take place on the RBI’s secure platform, and the instruments are backed by sovereign backing. This makes it an ideal option for individuals seeking risk-free or low-risk investment choices.
Once investors have an RDG account, they can log in at any time to check their holdings, download statements, track interest payments, and monitor upcoming maturities. The platform is designed to keep everything clear and accessible, allowing investors to stay updated about their portfolios at all times.
The RBI Retail Direct portal is open for all retail investors, where they can open a Retail Direct Gilt (RDG) Account and invest in G-Secs. The eligible investors who can open the RDG account are,
Resident Retail Investors
Any individual living in India can open an RDG account, as long as they have:
A rupee savings bank account in any Indian bank
A PAN card issued by the Income Tax Department
An Officially Valid Document (OVD) for KYC, such as Aadhaar, Passport, Voter ID, or Driving Licence
A valid email ID for communication
A registered mobile number for OTPs and login verification
Eligible Non-Resident Indians (NRIs)
NRIs can also open an RDG account if they are permitted to invest in Government Securities under the Foreign Exchange Management Act (FEMA).
The documents needed to open the Retail Direct Gilt (RDG) Account include,
Mandatory Documents
PAN card
Mobile number (active and accessible)
Email address (for communication and OTPs)
Scanned signature (clear image of signature)
Bank account details (investors can upload a cancelled cheque or enter the details manually)
Aadhaar number linked with the investor’s mobile number (for Aadhaar-based verification)
Additional Documents for Address Proof (if required for KYC) - Investors may also need to provide one document as proof of address. Accepted options include,
Passport
Driving Licence
Voter ID
Aadhaar card
NREGA job card signed by the State Government
A letter from the National Population Register showing the investor’s name and address.
The process for opening an RDG Account is explained below.
Visit the RBI Retail Direct Website
Go to rbiretaildirect.org.in and click on the Registration link to start the process.
Fill in Your Basic Details - Investors need to enter details like,
Full name
PAN
Mobile number
Email address
Residential address
Savings bank account number
A login name of your choice
The investor’s mobile number and email will be verified using OTPs.
Joint Account Requirements
If investors are opening a joint RDG account, both holders must provide their PAN, email ID, and mobile number.
OTP verification will be done for both.
Receive a Reference Number
After submitting the required details, investors will get a reference number which can be used to track the status of their application.
Complete Your KYC Verification
Investors must now complete the KYC process through the portal.
In case of joint accounts, both holders must complete KYC separately.
Add Nominee Details
Entering nominee information is mandatory when opening the account.
Bank Account Verification
The savings bank account will be verified by sending a small token amount from the RBI to the investor’s account.
The investor must confirm this amount online to complete the verification.
RDG Account Gets Activated
Once the KYC is approved, the RDG account will be opened in the investor’s name.
The account number, login ID, and password will be sent to their registered email ID.
In Case of KYC Failure
If KYC is not successful, investors can submit a new application or correct the details and resubmit their application.
The primary market is where the Government raises money by issuing new securities for the first time. These securities include T-Bills, State Development Loans (SDLs), Cash Management Bills (CMBs), Long-term G-Secs, and Sovereign Gold Bonds (SGBs). On the other hand, in Non-Competitive Bidding, investors can participate in government security auctions without quoting any price or yield. Investors simply apply, and the RBI decides the final price through the auction. Following this, investors receive an allotment that is either fully or partially based on availability. Non-Competitive Bidding is helpful as
It enables more retail investors to take part in G-Sec auctions easily.
Investors who do not understand complex auction pricing can still participate without worry.
Investors receive securities at the same final rate that is determined by the auction, ensuring fairness.
As long as rules are followed, there is a good chance of getting an allotment.
The facilities available on the RBI Retail Direct Portal include,
Open and Manage RDG Accounts - Investors can easily open, view, and manage their Retail Direct Gilt (RDG) accounts online.
Participate in Primary Market Auctions - Investors can participate in non-competitive bidding for new Government security auctions through CCIL, without needing to quote any price.
Invest in Sovereign Gold Bonds (SGBs) - The portal enables direct investment in SGBs, also processed through CCIL.
Access to Secondary Market Trading - Investors can use the NDS-OM portal to buy and sell existing government securities in the secondary market, with settlements handled by CCIL.
Additional Facilities include,
Investors can view and download their statement of holdings anytime.
The portal enables investors to add or update their nominee details easily.
Securities can be pledged or placed under lien if needed, such as for loans.
Investors can gift eligible government securities to another RDG account holder through the portal.
NDS-OM is an online, screen-based trading platform created by the RBI for buying and selling Government securities in the secondary market. It is an anonymous order-driven system, where investors can place buy/sell orders or match existing orders without knowing who the counterparty is. This anonymity ensures fair and equal access for all types of market participants. Earlier, only big institutions like banks, primary dealers, mutual funds, insurance companies, FPIs, and some HNIs could access it directly. With the RBI Retail Direct Scheme, retail investors can now open a gilt account and use NDS-OM to place bids and trade in the secondary market just like institutional players.
Key Features of NDS–OM
Covers all major G-Secs (including T-Bills, Dated G-Secs, and other government securities).
Ensures full anonymity before and after trades for fair and transparent participation.
Provides real-time prices, market depth, and trade updates instantly.
Follows the T+1 settlement cycle, thus, trades are completed on the next working day.
Has built-in risk control measures for safe and smooth trading.
Offers separate order books for Standard Lots and Odd Lots, making it easier for both large and small investors to trade.
RDG Account provides easy and direct access to government securities in a cost-effective and streamlined manner. This account can be useful for the following categories of investors.
Conservative investors who want safe, government-backed investments with low risk.
Beginner investors looking for a simple and transparent way to buy Government securities.
Long-term investors who want stable returns through interest payments from government bonds.
Investors seeking diversification to balance their equity or mutual fund portfolio with safer assets.
People planning for long-term goals like retirement or children’s education, where steady returns matter more than high risk.
Gold investors who prefer Sovereign Gold Bonds instead of buying physical gold.
NRIs eligible under FEMA who want secure ways to invest in Government securities.
Anyone wanting to invest without brokers and avoid extra fees or biased product recommendations.
The RBI Retail Direct Scheme is a simple and transparent way for everyday investors in India to access safe, government-backed investments without needing any broker or middleman. Through a free RDG account, investors can buy Government securities, T-Bills, State Development Loans, and even Sovereign Gold Bonds directly from the RBI, participate in primary auctions, and trade on the NDS-OM platform just like large institutions. With features like easy online access, real-time pricing, secure transactions, seamless bank linking, and a wide choice of low-risk instruments, the scheme helps investors build a stable and reliable part of their portfolio. Overall, RBI Retail Direct opens the door for retail investors to enjoy the safety, transparency, and long-term benefits of government securities with complete convenience.
This article sheds light on an important development for investors and how it can help investors build a stable and robust portfolio. Let us know your thoughts on the topic or if you need further information on the same, and we will address it.
Till then, Happy Reading!
Marisha Bhatt is a financial content writer @TrueData.
She writes with the sole aim of simplifying complex financial concepts and jargon while attempting to clarify technical and fundamental analysis concepts of the stock markets. The ultimate goal is to spread vital knowledge and benefit the maximum audience. Her Chartered Accountant background acts as the knowledge base to help clarify crucial concepts and create a sound investment portfolio.
Most new investors think that investing in all mutual funds will give them tax d...
One of the many features of investing inmutual funds is the ease of entering and...
Mutual fund investments have simplified greatly with just a tap on your smartpho...
