RBI Retail Direct: Treasury Bill Returns Beat Fixed Deposits Hands Down

Mouth watering indicative yields in primary auctions currently open to individual investors on the RRD Platform www.rbiretaildirect.org.in

Treasury Bill (T-bill) auction open till 8am on Wednesday, July 20, 2022

• 91days: 5.22 per cent p.a.
• 182 days: 5.74 per cent p.a.
• 364 days: 6.16 per cent p.a.

Central Govt Securities (G-sec) auction open till 8am on Friday, July 22, 2022

• G-sec 2024 6.59 per cent p.a.
• G-sec 2029 7.32 per cent p.a.
• G-sec 2032 7.44 per cent p.a. This is the highly liquid benchmark security maturing on Jan 17, 2032
• G-sec 2061 7.74 per cent per cent.

For the savvy retail investor

• T-bills (tenor below 1 year) offering better returns than most bank FDs (with similar tenor) and most low duration mutual funds
• G-secs (tenor up to 40 years) offering excellent rates at which one can lock in longer tenor money
• All without having to take on any credit risk!! 
• Minimum investment just Rs. 10,000. Lot size Rs. 10,000. Max amount Rs. 2 crore.
• Securities are tradeable on the secondary market segment of RRD. As awareness grows, more investors are likely to join the platform, making the instrument more liquid in the secondary market.

Please visit www.rbiretaildirect.org.in for

• Opening your account. Very smooth online process. You can get the login for the primary market segment in less than a day.
• FAQs
• Lovely, simple videos explaining relevant topics

Conclusion

I believe RRD is a beautiful initiative from RBI. In the long run, the platform may help in moderating interest rates, through a gradual process of disintermediation.

Retail investors having direct access to sovereign debt may have other benefits as well. In particular, it may motivate retail investors to shift some more portion of their physical assets to financial assets. This could again have a positive impact on the overall economy. 

Watch this space over coming days / weeks for further updates. 

Views expressed herein are personal.

Please provide your feedback at RRDfeedback@gmail.com.