In November 2021, the Reserve Bank of India, through its Retail Direct Scheme, allowed retail investors to directly invest in government securities (G-Secs). The Economic Survey 2022 expects this move to diversify the investor base for G-Secs and also give more flexibility to the government’s borrowing programme.
The Economic Survey also expects the scheme to play a pivotal role in channelising the savings of middle class, small businesspersons, and senior citizens directly into the risk-free G-Secs.
“With an objective to facilitate efficient direct access of retail individual investor to the G-Sec market, which was earlier directly being accessed only by large institutional investors, this scheme will give a boost to financial inclusion and broaden the investor base,” the Survey says.
The direct access to G-Secs has opened up new investing alternatives for retail investors.