Aparna Lucknow, India 601 Questions 0 Answers 0 Best Answers 678 Points View Profile Aparna Asked: October 13, 20212021-10-13T17:51:50+05:30 2021-10-13T17:51:50+05:30In: Economics What are G-Secs? What is RBI gives retail investors direct access to Government ‘Gilt bonds’? current affairspublic finsnce Share Facebook 1 Answer Recent Sagar 31 Questions 177 Answers 34 Best Answers 572 Points View Profile Sagar 2021-10-14T11:26:17+05:30Added an answer on October 14, 2021 at 11:26 am Context: Reserve Bank has allowed retail investors to directly buy government debt, also called “gilt bonds”, making India the first Asian country to do so. G-Secs G-Secs are traceable investment instruments issued by the Central or state governments and are the most risk-free sovereign-backed bonds available in the country. They can broadly be classified into four categories, namely Treasury Bills (T-bills), Cash Management Bills (CMBs), dated G-Secs, and State Development Loans (SDLs). These securities are available in both short-term and long-term tenures — ranging from three months to 30 years — with an annual yield starting from 3.37 percent. Significance of the move It is proposed to provide retail investors with online access to the government securities market — both primary and secondary — directly through the Reserve Bank (Retail Direct). This will broaden the investor base and provide retail investors with enhanced access to participate in the government securities market. Gilt bonds G-Secs carry practically no risk of default and, hence, are called risk-free gilt-edged instruments. 0 Reply Share Share Share on Facebook Share on Twitter Share on WhatsApp Leave an answerCancel replyYou must login or register to add a new answer. Related Questions What is Pathalgadi? What is Bodo Accord?
Reserve Bank has allowed retail investors to directly buy government debt, also called “gilt bonds”, making India the first Asian country to do so.
Significance of the move
G-Secs carry practically no risk of default and, hence, are called risk-free gilt-edged instruments.