November 12, 2021
All Scheduled Commercial Banks
All State Co-operative Banks / All Scheduled Primary
(Urban) Co-operative Banks / All Financial Institutions /
All Primary Dealers/All stock exchanges/
Clearing Corporation of India Ltd
Madam/ Dear Sir,
As part of continuing efforts to increase retail participation in government securities, the ‘RBI Retail Direct’ Scheme to facilitate investment in Government Securities by individual investors was introduced today. Under the scheme, Clearing Corporation of India Limited (CCIL) has been permitted to aggregate the bids received from ‘Retail investor’ in non-competitive segment of primary auctions of Government Securities and Treasury Bills.
2. Accordingly, the updated Scheme for Non-Competitive Bidding Facility in the auctions of Government Securities and Treasury Bills is given in Annex.
Yours faithfully,
(Rajendra Kumar)
Chief General Manager
Scheme for Non-Competitive Bidding Facility in the auction of
Government of India Dated Securities and Treasury Bills
I. Scope: With a view to encouraging wider participation and retail holding of Government securities, retail investors are allowed participation on “noncompetitive” basis in select auctions of dated Government of India (GoI) securities and Treasury Bills.
II. Definitions: For the purpose of this scheme, the terms shall bear the meaning assigned to them as under:
a. Retail investor is any person, including individuals, firms, companies, corporate bodies, institutions, provident funds, trusts, and any other entity as may be prescribed by RBI.
b. ‘Aggregator/Facilitator’ means a Scheduled Bank or Primary Dealer or Specified Stock Exchange or any other entity approved by RBI, permitted to aggregate the bids received from the investors and submit a single bid in the non-competitive segment of the primary auction.
c. ‘Specified stock exchange’ means SEBI recognised Stock Exchange, which have received No Objection Certificate (NOC) from SEBI to act as
aggregator/facilitator in the primary auction segment.
d. ‘Eligible Provident Funds’ are those non-government provident funds governed by the Provident Funds Act 1925 and Employees’ Provident Fund and Misc. Provisions Act, 1952 whose investment pattern is decided by the Government of India.
III. Eligibility:
(A) Participation on a non-competitive basis in the auctions will be open to a retail investor who:
1. does not maintain current account (CA) or Subsidiary General Ledger (SGL) account with the Reserve Bank of India; and
2. Submits the bid indirectly through an Aggregator/Facilitator permitted under the scheme; or
3. maintains the ‘Retail Direct Gilt Account’ (RDG Account) with RBI
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