RBI Retail Direct Investment Scheme: Mechanism, Pros and Cons

Abstract

The recent launch of RBI Retail Direct Investment Scheme is one of the critical steps taken by the government to reform the prevailing debt market in India. The scheme will not only benefit the retail investor but also facilitate the Central Bank of the country to perform its responsibilities efficiently by regulating the trading in Government securities. This article discusses the scheme and its advantages to the investors. It also highlights the limitations of the scheme. The trading of Government securities through online platform is a significant breakthrough for retail investors as they can invest in Government securities in easy, direct, safe and low cost manner.