- By Aditya Pratap Singh
- Fri, 01 Dec 2023 04:05 PM (IST)
- Source:JND
The Reserve Bank of India (RBI) informed that retail investors can now purchase Floating Rate Savings Bonds 2020 through its Retail Direct portal. The Retail Direct Scheme was launched by Prime Minister Narendra Modi on November 12, 2021. The scheme facilitates retail investors' access to Government securities by simplifying the investment process.
RBI-Retail Direct Scheme
Under the Scheme, individual investors can open a Retail Direct Gilt Account with RBI with help of its online portal. Using that account one can invest in government securities in the primary and secondary markets.
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What did RBI say?
"Expanding the range of products offered through the Retail Direct Portal, the Reserve Bank, in consultation with the Government of India, has also enabled the purchase of Floating Rate Savings Bonds 2020 (Taxable) i.e. FRSB 2020 (T)," RBI said in the statement.
All about FRSB bond
FRSB are bonds issued by the central government which cannot be transacted. These are paid after seven years from the date of issue. Earlier, retail investors were only allowed to invest in central government securities, treasury bills, state government securities, and sovereign gold bonds using the portal.