Synopsis
This move allows retail investors to directly invest in the safest fixed income avenue in the country and gives an alternative safer than bank fixed deposits. However, bank FDs and gilt mutual funds would still offer some benefits over direct investment in gits.
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Governor Shakitkanta Das in the latest bi-monthly monetary policy announcement of the RBI has said that retail investors will soon be able to buy and sell government securities directly. As per the announcement made, “Retail investors will be allowed to open gilt investment account directly with RBI- both primary and secondary.The account will be called RBI retail direct.”