Government Securities (G-secs)

- News: RBI has proposed to allow retail investors to open gilt accounts with the central bank to invest in G-secs directly.

- G-sec is tradable instruement issued by the central or state gov.

- Retail Investor is a non-professional investor who buys and sells securities like mutual funds and Exchange Traded Funds.

✅Key features:

- Retail investors will get online access to the government securities market – both primary and secondary.

- The account will be called RBI retail direct.

- Retail investors in the bidding process will be enabled through the core banking solution of Reserve Bank of India- E-kuber.

✅Significance:

1. Broaden Investor Base

Pioneer in Asia:Reform India’s economy

2. Facilitate Government Borrowings

3. Financialise Domestic Savings

4. Square Kilometre Array Observatory.