The RBI Retail Direct Scheme (RDS) is a new investment scheme launched by the Reserve Bank of India (RBI) in 2021. The scheme allows retail investors to buy and sell government securities directly from the RBI, without the need for an intermediary such as a bank or a broker.
The objective of the RDS is to provide retail investors with a safe, easy, and convenient way to invest in government securities, which are considered to be among the safest and most secure investment options available in India. The scheme also aims to deepen the government securities market by broadening the investor base and increasing retail participation.
Under the RDS, retail investors can invest in government securities with a minimum investment of Rs. 1000 and in multiples of Rs. 1000 thereafter, up to a maximum investment of Rs. 2 crores. The securities available for investment under the scheme include Treasury Bills, Government Bonds, and State Development Loans.
Investors can participate in the scheme through the RBI’s online platform, which can be accessed through the RBI’s website. The platform allows investors to open an account, view available securities, place orders, and track their investments in real-time. The platform also provides investors with access to a range of information and tools to help them make informed investment decisions.
One of the key benefits of the RDS is that it offers investors the opportunity to invest in government securities at a lower cost than traditional investment options, such as mutual funds or exchange-traded funds. This is because the scheme does not involve any intermediaries, and the RBI charges lower fees compared to other investment options.
The RDS is expected to benefit both retail investors and the government by providing a safe and easy way for retail investors to invest in government securities, and by increasing the retail participation in the government securities market. It is also expected to contribute to the development and deepening of the government securities market in India.
In conclusion, the RBI Retail Direct Scheme (RDS) is a new investment scheme launched by the RBI to provide retail investors with a safe, easy, and convenient way to invest in government securities. The scheme aims to deepen the government securities market by broadening the investor base and increasing retail participation. The RDS is expected to benefit both investors and the government by providing a low-cost investment option and contributing to the development of the government securities market in India.