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With reference to the Retail Direct Scheme of the Reserve Bank of India, consider the following statements:
1. It is a scheme that gives access to individual investors to buy government securities.
2. It allows the purchase of government securities through the Unified Payments Interface (UPI).
3. No fees are levied for facilities provided to the investors under the scheme.
How many of the above statements are correct?
  • a)
    Only one
  • b)
    Only two
  • c)
    All three
  • d)
    None
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
With reference to the Retail Direct Scheme of the Reserve Bank of Indi...
The Reserve Bank of India (RBI) is planning to launch a mobile application aimed at facilitating seamless investment in government securities by retail investors under the RBI Retail Direct Scheme.
  • It was initially introduced in November 2021.
  • It gives access to individual investors to maintain gilt accounts with the RBI and invest in government securities.
  • The scheme enables investors to buy securities in primary auctions as well as buy/sell securities through the NDS-OM platform.
  • Negotiated Dealing System - Order Matching system (NDS-OM) means RBI’s screen based anonymous electronic order matching system for trading in Government securities in the secondary market.
  • It is a comprehensive scheme which provides the following facilities to retail investors in government securities market through an online portal: Open and maintain a ‘Retail Direct Gilt Account’, access to primary issuance of government securities, and access to NDS-OM.
  • Eligibility: Retail investors can register under the scheme and maintain an RDG account, if they have the following: Rupee savings bank account maintained in India, PAN, any officially valid document for KYC purpose, valid email-ID and registered mobile number.
  • Payments for transactions can be done conveniently using a saving bank account through internet-banking or Unified Payments Interface (UPI).
  • Investor services include provisions for transaction and balance statements, nomination facility, pledge or lien of securities and gift transactions. No fees will be charged for facilities provided under the scheme.
  • To further improve ease of access, a mobile application of the Retail Direct portal is being developed. The app will enable investors to buy and sell instruments on the go, at their convenience.
Hence option c is the correct answer.
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With reference to the Retail Direct Scheme of the Reserve Bank of India, consider the following statements:1. It is a scheme that gives access to individual investors to buy government securities.2. It allows the purchase of government securities through the Unified Payments Interface (UPI).3. No fees are levied for facilities provided to the investors under the scheme.How many of the above statements are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'C'. Can you explain this answer?
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