RBI’s new app will allow you to directly invest in government bonds, check details here

The Reserve Bank of India is soon going to launch a new mobile application to encourage retail participation in the government securities (G-sec).

An extension of the central bank's Retail Direct Scheme, the RBI Retail mobile application will be a one-stop solution for investments in treasury bills and government bonds. The development of the app is aimed at removing the procedural complexities in investing in government securities.

Investors can access these instruments' primary and secondary markets via the app. RBI Governor Shaktikanta Das announced the new app after the central bank's monetary policy committee (MPC) meeting last week. RBI’s MPC met for the first time in FY2024-25 on Friday, April 5.

What are Government Securities?

Government Securities or G-Sec are financial instruments used by the government to raise funds from the market. Since they are government backed instruments, these securities offer stable and fixed returns. Government securities are low risk and come in two forms— treasury bills and bonds. Treasury bills come with a duration of less than a year while bonds are issued for a longer duration.

What is RBI Retail Direct?

The RBI Retail Direct Portal was rolled out in November 2021 to facilitate the buying and selling of government bonds by retail investors. The portal is part of the Retail Direct Scheme. It allows investors to open and operate their Retail Direct Gilt (RDG) account online in the primary auction of government securities and procedural guidelines for SGB issuance.

Further, retail investors can also buy and sell government securities on NDS-OM (Odd Lot and Request for Quote segments)— an anonymous electronic order matching system for trading in Government securities in the secondary market.

Investors can make payments for their investment via the RBI Retail Direct portal using a savings bank account through Internet banking or the Unified Payments Interface (UPI). The portal also offers support facilities via toll-free phone number and email.

What will the new mobile app offer?

RBI's new app will simplify investment in the government securities market. Retail investors will be able to trade in government securities with just a tap on their smartphone, adding a touch of convenience. The app could sport features like investment tracking, direct credit of interest, and online customer support.

It would allow investors to check their transaction, balance amount, make a nomination or gift transaction.

RBI's backing of the mobile app will make it more trusted among investors. While RBI confirmed the launch of the mobile app soon, the exact availability of it to investors is still unclear.

Who can open an account on RBI Retail Direct?

Retail investors can open and operate RDG accounts in single or joint holding mode. Non-residential investors can also invest in government securities. Investors need the following documents to access the RBI Retail Direct Portal: savings bank account in India, PAN, KYC documents ( Passport, voted ID and Aadhaar), valid email ID and valid mobile number.

The central bank charges no extra fee for operating an RDG account under the RBI Retail Direct scheme.