Have you heard of RBI Retail direct? (https://rbiretaildirect.org.in/#/) This is a way to invest in Govt primary issuances (and re-issuances) of government securities.
Some key aspects of RBI Retail Direct –
- Retail investors can Invest directly in govt securities
- Access to primary market issuance
- Ability to trade in the secondary market
- Invest directly using RBI’s infrastructure than any broker
One big problem with investing through this medium could be lower secondary market liquidity because a much lesser number of investors would have invested through this medium.
Investors can invest in Central Govt securities, State Development Loans (also called SDL), and Sovereign Gold Bonds. The bond auction page looks like this and gives you all the details you need to invest in the bond of your choice.
Here is my personal experience of the investment made so far through RBI Retail Direct platform:
- Easily able to create an account and get a login in 3-4 days including the KYC process
- Easily able to auction a bond and see my portfolio allocation
- Interests are credited to my bank account on time
- All the surplus money over the auction settlement price was credited to my bank account.
- Overall UI is OK, even if a bit dull and uninteresting.
Overall, the biggest advantage is that there are no transaction costs unlike when you go through a broker! I would continue to invest through RBI Retail Direct – anyone who thinks about holding a bond till maturity must utilize this medium. And yes, NRI’s can open this account.
Happy investing 🙂
