The Reserve Bank of India (RBI) on February 5, 2021 allowed retail investors to open Gilt accounts with RBI. The objective behind this move is to encourage retail participation in the Government securities market.
- According to the Central bank’s “Statement on Developmental and Regulatory Policies” released after the Monetary Policy Committee (MPS) meet, retail investors would be allowed online access to both primary and secondary government securities market.
- A “Gilt Account” means an account opened and maintained for holding Government securities, by an entity or a person including ‘a person resident outside India.
- Gilt funds are basically debt funds that invest mainly in government securities. They come with no risk of non-payment of interest or principal amount.
