Retail investors get direct G-Sec access

Move part of steps to raise Rs12 lakh cr | RBI keeps key rates unchanged

Retail investors get direct G-Sec access

Shaktikanta Das, RBI Governor

New Delhi, February 5

The Reserve Bank on Friday permitted retail investors to directly buy government securities (G-Sec) as part of measures to maintain availability of funds in the market and also raise Rs 12 lakh crore debt on behalf of the Centre during 2021-22. Details of the facility will be shortly worked out.

“This is a major structural reform placing India among a select few countries which have similar facilities,” said RBI Governor Shaktikanta Das at a media briefing. Retail investors are presently permitted to indirectly buy government securities, but this is the first time they will be offered the direct route.

The apex bank’s monetary policy committee decided to make no changes in the interest rates as the “need of the hour was to back growth,” said Das. Other steps to ensure funds for the industry did not get crowded out as the RBI raised Rs 12 lakh crore for the government in a “non-disruptive” manner including a graded restoration of the cash reserve ratio (CRR), permitting NBFCs to join the Rs 1-lakh-crore special facility for stressed sectors and continuation of relaxation to banks that will free up Rs 1.53 lakh crore in the next six months.

India enters select group

This (direct G-Sec access) is a major reform placing India among a select few countries which have similar facilities. The need of the hour is to back growth. —Shaktikanta Das, RBI Governor

Indians will also be allowed to make remittances to International Financial Service Centres (IFSCs) while foreign portfolio investors can invest in defaulted corporate bonds. — TNS

Tribune Shorts


Top Stories

Army made no attempt to identify civilians before shooting, tried to ‘hide’ bodies: Report

Army made no attempt to identify civilians before shooting, tried to ‘hide’ bodies: Report

Quoting eyewitnesses, the two top officials have said villag...

Rajya Sabha adjourned till 2 pm as opposition members try to raise issues

Rajya Sabha adjourned till 2 pm as opposition members try to raise issues

On Monday, the Rajya Sabha had witnessed multiple adjournmen...

Punjab and Haryana High Court tells Punjab to ‘wake up from slumber’ on drugs case

Punjab and Haryana High Court tells Punjab to 'wake up from slumber' on drugs case

State tells the court that it is no more in ‘deep slumber’

Congress names Punjab poll panels, Maken screening chief

Congress names Punjab poll panels, Ajay Maken screening chief

Charanjit Singh Channi, Navjot Singh Sidhu, Sunil Jakhar ex ...

Course correction by Congress party

Course correction by Congress party in Punjab

Old-timers were feeling ignored, say sources

Cities

View All