Current Affairs
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‘Big reforms: RBI gives retail investors direct access to Government gilt bonds’

  • Posted By
    10Pointer
  • Categories
    Economy
  • Published
    13th Feb, 2021
  • Context

    Sub-topic

    G-III: Economy- Banking Sector, Public Borrowing & Management of Public Debt

    In a major move aimed at encouraging small investors to become direct investors in government bonds, the Reserve Bank has proposed to allow them to directly buy government debt, also called “gilt bonds”, making India the first Asian country to do so and among a handful globally.

  • Background

  • Analysis

  • What are G-Secs?

  • Are they entirely zero-risk?

  • Impact of the decision

  • What is the current system for retail investors?

  • What are the challenges?

  • Conclusion

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