Updated Mar 09, 2021 | 06:26 IST
The decision of the RBI to allow Individuals to open a G-sec account with it is a good decision but it will not have broad-based participation from retail investors. Representational image
The Reserve Bank of India (RBI) in its latest monetary policy meeting has decided to allow retail investors to participate in government securities by opening account with it. Let us discuss how it will work and whether retail investors will really participate in it.
What is the proposal?
As per the decision of the RBI, individuals will be allowed to open a gilt account to trade on RBI’s electronic platform. Retail investors will be able to buy and sell government securities online through this platform. The exact modalities on how this will function are yet to be made available by RBI. This will help expand the scope of products available to retail investors to invest in fixed income instruments. This will also help government i