RBI Retail Direct: How To Invest In Government Bonds Online? Here's A Guide

The Reserve Bank of India (RBI) has made it easier for small investors to access government bonds through its Retail Direct platform. The service provides direct access to government securities. Now, potential investors can buy and sell government securities directly without having to go through brokers or intermediaries.

RBI Retail Direct is an online platform that allows individual investors to purchase and sell government securities (G-Secs) directly. Investors can access Treasury Bills (T-Bills), Government of India Bonds, Sovereign Gold Bonds (SGBs) and State Development Loans (SDLs) through this facility. By allowing direct participation, the platform opens up what was once an institution-dominated government debt market to the general public.

All transactions are conducted through a Retail Direct Gilt (RDG) account, which can be opened free of cost on the official portal at https://rbiretaildirect.org.in/#/.

Investors who invest through RBI Retail Direct do not require a Demat account. Instead, they need to create a free RDG account online. But if investors want to invest through stock exchange platforms or brokers, a Demat account linked to a bank account will be required.

• Complete KYC and register: Provide PAN, bank details and identification documents to complete the KYC process.

• Log in and link bank account: Once registered, link your savings account for fund transfers.

• Select bonds or auctions: Choose from available bond issues or ongoing government bond auctions.

• Place order and make payment: Submit your bid or purchase order, then pay through UPI or net banking.

• Receive confirmation: After successful allotment, bonds are credited to your RDG or demat account.

For auctions, the payment is debited only if the allotment goes through. Otherwise, the blocked funds are released automatically.

The registration process for the RDG account is entirely digital. To open the account, an investor must have:

• A valid PAN card

• A savings bank account in India

• A registered email ID and mobile number

• KYC documents linked to the PAN and bank account

Once verified, investors can use the RDG account to participate in primary auctions or trade securities in the secondary market through the Negotiated Dealing System – Order Matching (NDS-OM) platform.

Government securities are regarded among the safest investment option, carrying full sovereign backing. Though returns are moderate compared to equities or corporate bonds, they offer stable and predictable income.

Government bonds yield a fixed rate of interest, generally paid every six months. The interest received is taxable as per the investor's applicable income tax slabs. At maturity, the bond's face value is credited directly to the linked bank account.