RBI’s Retail Direct Platform Invites NRIs and OCIs to Invest in Government Securities

The Reserve Bank of India’s (RBI) Retail Direct Scheme has broadened investment avenues for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs). This scheme allows retail investors to invest in government securities, and now NRIs and OCIs can participate in investments for Government Securities (G-Secs), State Development Loans (SDLs), and Treasury Bills (T-Bills) via the RBI’s retail direct platform.

Investors enjoy the advantage of conducting unlimited trades in secondary markets through the RBI retail direct account without incurring any commission, brokerage, or annual fees. However, investments in Sovereign Gold Bonds (SGBs) and floating rate bonds are not permitted on this platform.

The Retail Direct Scheme is designed to facilitate investment in government securities by retail investors, including NRIs. Investors can purchase treasury bills, dated securities, SGBs, and SDLs using Internet banking or Unified Payments Interface (UPI).

To access government securities and secondary market operations through the Negotiated Dealing System-Order Matching (NDS-OM) system, investors can open an RDG Account following the requisite Know Your Customer (KYC) verification. The RBI’s ‘Fully Accessible Route’ (FAR) also enables NRIs to invest in G-Secs, SDLs, and T-bills.

To open an RBI Retail Direct account, applicants must possess an Indian mobile number linked to Aadhaar, a Non-Resident Ordinary (NRO) savings bank account with UPI or net banking services, as well as a Permanent Account Number (PAN) card. All customer requests are processed via One Time Password (OTP). Nomination details are mandatory during account opening, along with a token amount credited for verification purposes.

Joint accounts can also be established under this scheme. For joint accounts, the PAN card details, email address, and mobile number of both account holders are required. Applicants will receive a reference number to track their application status, and confirmation of the RDG account opening is communicated via email.

This article was generated with AI support and reviewed by an editor.