You will also be able to open an account with the Reserve Bank of India, you will have to buy government bonds, India becomes the first country in Asia to do so
The
Reserve Bank of India has announced a system of opening its account directly
with the central bank for the purchase of Government Securities (G-Sec) by
offering it to small investors. G-Sec is colloquially known as Bond. RBI
Governor Shaktikanta Das said that now retail investors will be able to buy
government bonds directly through Retail Direct.With the introduction of this
system, India has joined the select countries which give direct access to the
purchase and sale of government securities.
The
central bank hopes that the move will expand the gilt market and the debt
market in a big way in view of the government meeting its borrowing target of
Rs 12 lakh crore in the next financial year.In this way, the RBI has opened up
a huge and endless path of borrowing for the government, as is done in the
domestic stock market right now. However, the difference is that it will be
under the supervision of RBI.
What is the situation at present
Presently
RBI allows small investors to buy government bonds on BSE and NSE through Gobid
platform. Das said, "As part of the ongoing efforts to increase retail
participation and ease of access to government securities, the government
securities market with the facility to move beyond the aggregator model and
open retail investors to open gilt securities account (Retail Direct) with RBI-
It has been decided to provide direct online access to both primary and
secondary markets.
India will join these countries
India
will be the first country in Asia to do so and it is allowed in few countries
in the world. Currently, small investors in the UK, Brazil and Hungary are
allowed to buy and sell government securities directly. This is controlled
through third parties.
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