Economics • Banking & FinanceMedium
What is the primary objective of the 'RBI Retail Direct' scheme?
A. To allow retail investors to open zero-balance savings accounts directly with RBI
B. To facilitate retail investors to easily invest in government securities (G-secs) directly in primary and secondary markets✓ Correct Answer
C. To provide direct subsidies to retail traders through commercial banks
D. To regulate digital payment gateways used by retail merchants
💡 Solution & Explanation
The RBI Retail Direct scheme enables retail individual investors to open and maintain Government Securities accounts directly with the Reserve Bank of India, facilitating seamless participation in primary and secondary debt markets. This initiative broadens the investor base for government borrowings beyond institutional players like banks and insurance companies.
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