Take A Look At How To Open a Gilt Account With RBI To Purchase Government Bonds

In July 2021, the RBI introduced a dedicated domain for investors interested in purchasing government bonds. For this, the Central Bank will offer access to its RDG or Retail Direct Gilt account.  Read on to find out how you can open a gilt account with RBI.

Steps To Open A Gilt Account With RBI

Retail investors can open a retail direct gilt account through RBI’s online portal. Registered investors can also access government securities’ primary issuance through the website. It offers the following types of investments to users:
  • Treasury bills by the GoI
  • Government dated securities
  • State Development Loans (SDLs)
  • Sovereign Gold Bonds (SGB)
Here are the steps to follow to get started with an RDG account: Step 1: Visit the Reserve Bank of India’s website. Step 2: Fill out the designated online form as prescribed for an RDG account. Step 3: Enter all the relevant details. Then, authenticate the same by entering an OTP generated against your registered email address and contact number. Step 4: Your RDG account will open once the registration is successful. Step 5: At this point, you will receive all the instructions pertaining to accessing the web portal via email or SMS.

Requirements To Open RBI’s RDG Account

An individual must meet a set of requirements in order to register and maintain an RDG account with RBI. These requisites are as below:
  • An investor must have a savings account.
  • The individual should have a PAN as provided by the Income Tax Department of India.
  • An applicant must also have a valid contact number and an email address.

Charges And Fees To Open An RDG Account With RBI:

Here is a rundown on the applicable fees and charges when you open a retail direct gilt account:
  • Investors are liable for any charges and fees associated with payment gateways and other services.
  • The Reserve Bank of India does not levy any charge or fee to open and maintain a retail direct gilt account.
  • There are no fees applicable in the primary auctions’ submitting bids.
However, investors must note that the starting date of this proposition is yet to be announced.  So, how can you invest in government bonds right now?  Well, there are dedicated gilt funds offered by various financial service providers through which individuals can invest in government bonds. Alternatively, they can also choose to park their money into corporate bonds through investments marketplaces like KredX. With KredX, the entire process of investing in bonds takes place online and through simple processes. Fintech also offers a diverse range of bond offerings so that investors can choose a bond that suits them best. Moreover, alongside investing at the click of a button, investors can track their portfolios online. 

How To Invest In Bonds Online?

In order to invest in bonds via online investment platforms like KredX, you must follow these steps below: Step 1: Visit the official website. Step 2: Log in to the portal by submitting your registered email ID and password. In case you are not registered with the portal, you can easily sign up by furnishing a few details, such as your mobile number, name, email ID, password, and referral code (if any). Step 3: Once logged in, browse through the website and check the available bond options. Then, select a bond that you believe aligns with your financial goals. Step 4: Enter the number of units of your preferred bond. Step 5: Click on the button ‘Book Now’. With these simple steps, you can invest in bonds by way of a convenient and straightforward process. After your registration is complete, the fintech’s relationship manager will reach out to you via a phone call to complete your bond investment.

Bottom Line 

By allowing investors to open an RDG account, the Reserve Bank of India has made it a lot easier to invest in government bonds. That said, the Central Bank is yet to announce its starting date for this facility. Meanwhile, investors can leverage online marketplaces, such as KredX to commence their investment journey. However, they must be cautious when choosing an investment platform. It is wise to opt for one that offers a wide range of investment products so that investors can pick the one that suits them best.