Short answer: RBI Retail Direct lets you open a free account with the Reserve Bank of India itself, called a Retail Direct Gilt (RDG) account. From that account you can buy Government of India bonds, state government bonds (SDLs) and Treasury Bills, and hold RBI Floating Rate Savings Bonds, with no broker in between. You can start with ₹10,000, bid in new issues and sell on the RBI's own trading platform. It is open to resident Indians and to NRIs who are allowed to invest in government securities.
This guide covers what you can buy, who can open an account, how bidding works, what it costs, how the income is taxed, and how to keep track of these holdings once you own them.
What is RBI Retail Direct?
The RBI launched the Retail Direct Scheme in November 2021. Before it, buying government bonds meant going through a bank, a broker or a mutual fund. Now an individual can hold them directly with the central bank, the same way large institutions do.
Government securities are loans you give to the government. In return you get fixed interest, usually every six months, and your money back on the maturity date. Because the lender is the Government of India or a state government, they are the safest rupee investments available.
What you can buy
| Instrument | What it is | Term | How you earn |
|---|---|---|---|
| Dated G-Sec | A Government of India bond | From about 2 up to 50 years | Fixed interest every six months, money back at maturity |
| SDL (State Development Loan) | A state government's bond | Usually around 10 years; terms vary | Fixed interest every six months, usually a little higher than a G-Sec |
| T-Bill (Treasury Bill) | Short-term Government of India borrowing | 91, 182 or 364 days | Bought at a discount, repaid at full face value |
| Floating Rate Savings Bond 2020 (Taxable) | An RBI savings bond | 7 years | Interest every six months; the rate resets every six months |
| Sovereign Gold Bond (SGB) | A bond counted in grams of gold | 8 years | 2.5% a year interest, plus the gold price at redemption |
Two points that are easy to miss:
- No new Sovereign Gold Bonds have been issued since February 2024. The government paused the scheme because rising gold prices made it an expensive way to borrow. SGBs you already hold are not affected: they keep paying interest and are redeemed on their original terms.
- The Floating Rate Savings Bond pays 8.05% for July to December 2026. The rate is set at the National Savings Certificate rate plus 0.35%, and it is reset every six months. The bond cannot be traded or sold to someone else.
Who can open an account
- Resident individuals with a PAN, a rupee savings bank account in India, an email address and a mobile number.
- NRIs who are eligible to invest in government securities under FEMA 1999. The Floating Rate Savings Bond is for residents only, so NRIs cannot buy it.
- The account can be in one name, or joint with one other eligible person.
- A nominee is compulsory, and you can name up to two. You can change them later.
Companies, HUFs and trusts cannot open one: the scheme is for individuals.
How to open an RDG account
- Go to the official portal, rbiretaildirect.org.in, or the RBI Retail Direct mobile app, and choose to register.
- Enter your PAN, email and mobile number, and verify them with one-time codes.
- Complete KYC. You need an Aadhaar number linked to your mobile, a scanned signature, and your bank account details. Address proof is only needed if your address has changed from your KYC records.
- Add your nominee or nominees and submit.
Once the account is open you get a login for the portal. Interest and maturity money are paid straight into the bank account you linked.
Watch for look-alike sites. The RBI never asks you to pay a fee to open the account. Type the address yourself rather than following a link in a message.
What it costs
- Opening and keeping the account is free. The RBI charges nothing for the account or for placing bids.
- When you pay for a purchase through the payment gateway (UPI or net banking), the gateway may add a small charge.
Buying in a new issue (the primary market)
The government sells new bonds and T-Bills at auctions. Retail Direct investors take part through non-competitive bidding, which means:
- You do not choose a price. You say how much you want to invest.
- You get the weighted average price of the successful bids that big institutions placed in the same auction.
- You can place one final bid per security in each auction.
- The minimum is ₹10,000, in multiples of ₹10,000, for G-Secs, SDLs and T-Bills.
- You pay through UPI or net banking.
Upper limits apply: up to ₹2 crore face value per G-Sec in each auction, and caps set as a share of the issue for SDLs and T-Bills. Few individuals come near them.
Auto-bidding for T-Bills
Since August 2025 the portal and app can bid for T-Bills automatically. You choose the T-Bill term, the amount and how often (weekly, monthly or quarterly), and a NACH mandate takes the money from your bank. There is also an option to roll T-Bills over automatically when they mature, so the money goes back into the next auction instead of sitting in your bank account.
Buying and selling later (the secondary market)
You can also buy bonds that have already been issued, or sell yours before maturity, on the RBI's trading platform NDS-OM (Negotiated Dealing System - Order Matching), which you reach from the Retail Direct portal. Here the price moves with interest rates: when rates fall, existing bonds become worth more, and when rates rise, they become worth less. If you hold to maturity, those price moves do not matter: you get the full face value back.
Trading in some bonds is thin, so selling quickly at a fair price is not always possible. Treat these as money you can leave until maturity.
How the income is taxed
- Interest on G-Secs, SDLs and Floating Rate Savings Bonds is added to your income and taxed at your slab rate.
- T-Bills: the difference between what you paid and the face value you get back is taxed at your slab rate.
- Selling before maturity can create a capital gain or loss.
- SGB interest (2.5% a year) is taxable. The gain when an SGB is redeemed with the RBI at maturity is tax-free for individuals.
There is no tax deduction for investing, unlike PPF. If your tax position is complicated, check it with a CA.
Is it right for you?
It suits you if you want money safe from default, a fixed income you can plan around, or a home for an emergency fund or a near-term goal (T-Bills), without paying a fund's yearly expense ratio.
Think twice if you may need the money suddenly (selling early is not always easy), or you are in the 30% tax slab. In that case the after-tax return on interest can be lower than other options, so compare before you invest.
Keeping track of RBI Retail Direct holdings
The Retail Direct portal shows what you hold with the RBI, but nothing else. Your bank FDs, mutual funds, shares, EPF and property all live somewhere else. Bonds are also easy to forget because nothing happens for years until the maturity date arrives.
In Agni Folio you can add each holding as its own type, so it sits next to everything else you own:
- Government Bond for dated G-Secs, and T-Bills for Treasury Bills.
- State Development Loan (SDL, India) for state bonds.
- RBI Floating Rate Savings Bond (India) for the floating rate bond.
- Sovereign Gold Bond (SGB, India), entered in grams, with the price per gram.
Each bond takes the number of units, the price, the interest rate and the maturity date (a T-Bill takes the amount and its maturity date), and Agni Folio reminds you before a bond matures so the money does not sit idle. These types are open to everyone, including NRIs whose home country in Agni Folio is Singapore, the UAE or anywhere else. You can type the price yourself, and it converts into your chosen currency along with the rest of your net worth.
Start tracking your net worth in Agni Folio. It's free to start.
Frequently asked questions
Is RBI Retail Direct safe?
Your account is held with the Reserve Bank of India, and the bonds are issued by the Government of India or state governments. There is no default risk in the usual sense. The value of a bond can go up and down before maturity if you sell early.
What is the minimum investment?
₹10,000 for G-Secs, SDLs and T-Bills, in multiples of ₹10,000.
Are there any charges?
Opening and keeping the RDG account is free, and the RBI charges nothing for bids. The payment gateway may add a small charge when you pay.
Can NRIs invest through RBI Retail Direct?
Yes, NRIs who are eligible to invest in government securities under FEMA 1999 can open an account. The Floating Rate Savings Bond is for residents only.
Can I still buy Sovereign Gold Bonds?
No new SGBs have been issued since February 2024. Bonds already issued keep paying interest and are redeemed on their original terms.
Do I need a demat account?
No. The RDG account with the RBI holds the securities itself.
