Reserve Bank of India’s Retail Direct platform is becoming very popular among investors these days. More than 35 thousand investors have joined this platform in a very short time. Through this platform, one can easily buy and sell government bonds. Being invested in government bonds, it is completely safe for the investors.
Interest earned from FD: The Retail Direct Platform was launched by RBI in November 2021. Investors are getting an interest of around 6.8 per cent on central government bonds available on this platform, while 10 year bonds of state government are getting interest ranging from 7.2 to 7.24 per cent. Due to which a large number of investors are getting attracted towards bonds.
Interest can be tax free: Investors can easily sell bonds and gilts online through RBI’s Retail Direct platform. At the same time, according to the news of the Economic Times, the government is also planning to give income tax exemption on the income earned from it to encourage retail investment in the bond market.
The dominance of banks and institutions will end: Generally, most of the bond markets in the world are monopolized by the banks and institutions there, but through this platform, RBI is ensuring that retail investors in India also have a share in the bond market. According to the Economic Survey 2021-22 of the Government of India, this scheme will prove useful in moving the savings of the middle class, small businessmen and senior citizens to risk-free government securities. For this, RBI will also run awareness campaigns across the country.
How to invest: To invest in this scheme, first you have to go to the RBI portal. Where you have to open Online Retail Direct Gilt Account. Then, through this account, you can invest in Central Government Bonds, State Government Bonds and Treasury Bills. You have to invest at least 10 thousand rupees in a government bond, while there is no maximum investment limit. At the same time, from this account you can also invest in Sovereign Gold Bond Scheme. In this scheme, you have to take at least 1 gram of gold, in which you can invest for a period of 1 year to 30 years.