RBI Announces Gilt Account : Soon You will be able to Invest in Government Securities via Retail Direct

Government and RBI will soon allow Retail Investors to Buy, Sell, and Manage their Government Securities directly via an online account.

by FighterMan Updated: 06 Apr, 2022, 18:20 IST
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RBI Announces Gilt Account : Soon You will be able to Invest in Government Securities via Retail Direct

Today, the Reserve Bank of India(RBI) announced the Gilt Account i.e. the Retail Direct campaign for retail investors interested in Government Securities. The reason behind this is to encourage retail investments and also raise funds for the Government which is economically hit due to Covid-19.

The Gilt account will allow you to enter the primary as well as the secondary government securities market. The biggest advantage here is that you will surely get your principal amount and interest. Therefore, you are definitely not going to make any losses.

This move by the RBI might have a negative impact on Fixed Deposits as people will look to invest in a better rewarding scheme. Although, it is also possible that the RBI issues Gilt accounts to a limited number of investors only at start.

Shaktikanta Das, the RBI Governor, said in a statement that they were planning for this from a long time as Indian retail investors should be granted freedom to trade in Government markets. Moreover, he believes that this move will improve the GDP and get better financial results in FY 2021-22.

What is Gilt Account and Retail Direct?

A Gilt Account is a digital record of an investor and his/her investments stored by RBI. Here, investments include only Government Securities. A retail investor can buy, sell, and manage these securities via the Gilt account. Whereas, Retail Direct is nothing but a campaign name for this online account management platform indicating “direct investment for retailers”.

What do you think about this investment platform by RBI? Do share your thoughts with us below. You can also have a look at our article on PayPal to Shut Down Domestic Payments Business in India From April 1,2021.

Note: The RBI has just announced this scheme today and soon will launch it. Therefore, nothing can be assured officially before the release.

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