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Economic Survey 2022: Direct retail investor participation in G-Secs will give flexibility to government’s borrowing programme

The Economic Survey expects RBI move to channelise savings of middle class, small businesspersons and senior citizens into G-Secs.

January 31, 2022 / 02:32 PM IST
The direct access to G-Secs has opened up new investing alternatives for retail investors.

The direct access to G-Secs has opened up new investing alternatives for retail investors.

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.