Under the scheme announced by the RBI on Monday, investors can open a ‘Retail Direct Gilt Account’ through an online portal. This portal will give investors access to the primary auction of government securities. While the guidelines are in place, the RBI has not yet announced the launch date.
It will also provide them access to the secondary market — the NDS-OM (negotiated dealing system – order matching) segment. Until now, only entities like banks and MFs could participate in this segment.
Most of the time, government bonds provide lesser returns than fixed deposits. However, if the bond is held to maturity, the investor is assured of getting his money back.