Investing in government bonds has become a breeze for both Indian residents and NRIs.
Thanks to changes made by the Reserve Bank of India (RBI) two years ago, NRIs can now easily invest in various government securities, development loans, and treasury bills. We’ll guide you through the process.
RBI’s Retail Direct Platform
Two years ago, the Reserve Bank introduced the Retail Direct Platform to simplify the investment process in government securities.
Through this platform, investors can open an account with the RBI by following a few simple steps.
Once you have an account, you can invest in government securities, development loans, and treasury bills effortlessly.
Free and Convenient
One of the advantages of using RBI’s Retail Direct platform is that it’s completely free. There are no brokerage fees, commissions, account opening charges, or annual maintenance fees.
This means you can open a free RBI retail direct account and enjoy the benefits of government bond investment.
However, it’s essential to note that NRIs cannot invest in sovereign gold bonds or floating rate bonds using this platform.
Documents Needed for an RBI Retail Direct Account
To open an RBI Retail Direct Account as an NRI, you’ll need a few things, such as:
1) An Indian mobile number linked to Aadhaar.
2) An NRO savings bank account with UPI or net banking.
3) A PAN card.
4) A scanned copy of a canceled check and the signature from your NRO bank account.
How to Open an RBI Retail Direct Account as an NRI
1) Visit the RBI Retail Direct portal.
2) Choose the RDG account registration option.
3) Fill out the form with the required information.
4) Verify your mobile number and email with an OTP.
5) Review your information on the new page and submit.
6) You’ll receive an application number, after which you can initiate the KYC process.
7) Select CKYC or offline KYC as per your preference on the e-KYC portal.
8) If using SEKYC, enter the number and verify the details.
9) Complete your KYC and provide tax residency details while consenting to PMLA and FATCA guidelines.
10) Upload your scanned signature in PDF or JPG format.
11) Choose your bank from the dropdown menu and submit.
12) Fill in the nominee’s details on the new page.
13) Complete a video KYC, and your retail direct account will be activated.
Investing in government bonds through RBI’s Retail Direct platform has never been easier for NRIs.
