G-Secs: What is RBI retail direct app and how can investors use it to buy bonds?

Are you interested in buying government securities and bonds? If yes, you can buy them on RBI Direct Retail app or portal.

For the unversed, RBI direct retail scheme was launched in Nov 2021, which enables investment in government securities by individual investors. Under this scheme, investors can open a Gilt Securities Account — Retail Direct Gilt account with the RBI.

Meanwhile, the finance ministry announced recently that out of gross market borrowing of ₹14.01 lakh crore budgeted for the current fiscal, ₹6.61 lakh crore (47.2 per cent) will be borrowed in the second half of the year through the issuance of dated securities, which also includes ₹20,000 crore of Sovereign Green Bonds (SGrBs).

Although the RBI Retail Direct Scheme was introduced in Nov 2021, the mobile app was launched in May 2024. The app is available on Play Store for android users as well as on App Store.

Government Security (or G-Secs) is a financial instrument issued by the Central government or the state governments which acknowledges the debt obligation of the government.

These securities are either short term (with maturity of less than one year) or long term (usually called government bonds or dated securities with maturity of one year or longer).

RBI Direct Retail App

The RBI Direct Retail app enables investors to buy Central government securities (including Treasury Bills and sovereign gold bonds) as well as securities issued by various state governments.

The app has a rating of 3.8 with 536 reviews (as on Sept 28, 2024) and only one lakh plus downloads.

Through this app, one can invest in primary markets via bond auctions as well as in secondary markets through NDS OM which is RBI’s trading system.

It is interesting to note that investors receive interest as well as maturity proceeds directly into a bank account on the due dates.

Latest features

The banking regulator recently introduced a few features on RBI Retail Direct Mobile App for improving the user experience of participation in the G-Sec market through the mobile app.

1. Quick Access menu: A new screen was added containing separate icons to give quick access to various pages of the app such as details about government securities, participation in primary auction and buy/sell securities through secondary market (NDS-OM Retail).

2. Switching between the two: This enables a user to access and switch between the RBI Retail app and NDS-OM Retail app without a separate login.

3. Explanatory videos: A number of walkthrough videos were also added to the retail direct app which explain how to access and use the two apps: RBI Retail Direct App and NDS-OM Retail.