Question

Q. With reference to the RBI Direct Scheme, consider the following statements:

Select the correct answer using the codes given below:

• A. 1 only
• B. 2 only
• C. 1 and 3 only
• D. 1, 2 and 3

Answer 1

The correct option is C 1 and 3 only

Explanation:

• Statement 1 is correct: RBI Retail Direct Scheme allows retail investors to buy and sell government securities (G-sec) online both in the primary and secondary markets.
• Statement 2 is incorrect: Participation and allotment of securities will be as per the non-competitive scheme for participation in the primary auction of government securities and procedural guidelines for sovereign government bond issuance. Only one bid per security is permitted. On submission of the bid, the total amount payable will be displayed. Payment to the aggregator / receiving office can be made through using the net-banking/UPI facility from the linked bank account, whereby funds will be debited at the time of submission of bids on the portal.
• Statement 3 is correct: The small investors can now invest in G-Secs by opening a gilt securities account with the RBI. The account opened will be called Retail Direct Gilt (RDG) Account. A retail investor can take a loan against the securities available in the RDG account.