Chasing higher returns: RBI’s Retail Direct platform sees healthy retail investor interest
October 14, 2025
RBI's retail direct scheme sees 82.5% increase in accounts, offering safe, flexible, and high-yield investment options for retail investors.
The total number of accounts opened on RBI’s retail direct scheme (RDS) platform soared 82.5 per cent year-on-year (y-o-y) at 3,12,618 as of September 29, 2025, in a sign of retail investors’ interest amid falling deposit rates and volatile stock markets.
As of September 30, 2024, the total number of accounts opened on the RDS platform, which was launched in November 2021, stood at 1,71,269, per RBI data.
Along with the jump in total number of accounts opened, primary market subscriptions in Treasury Bills, Floating Rate Savings Bonds, Central Government Dated Securities, State Government Securities and Sovereign Gold Bonds via the platform, too, rose 37 per cent y-o-y to ₹7,302 crore as of September 29, 2025 (₹5,329 crore as of September 30, 2024).
Total traded volume (secondary market) in the aforementioned instruments shot up about 6.43 times to ₹5,293 crore (from ₹823 crore).
Venkatakrishnan Srinivasan, Founder & Managing Partner, Rockfort Fincap LLP, observed that for decades, bank fixed deposits (FDs) and small savings schemes have been the traditional avenues for risk-averse investors and senior citizens.
However, in the current environment, most good banks are offering interest rates below 7 per cent, which is often inadequate to manage regular household expenses, especially for retirees, who depend on interest income. Small savings schemes, on the other hand, provide safety and decent returns, but come with lock-in restrictions and limited flexibility.
modern alternative
Venkatakrishnan emphasised that this is where RBI’s RDS offers a fresh, modern alternative — combining sovereign safety, flexibility and attractive yields in a completely online format. It gives investors a direct route to access these opportunities, which were earlier available only to institutional participants.
Further, with the extremely volatile equity markets, many investors are currently looking at safer fixed income investment options, which make this scheme very attractive
Referring to better returns offered by instruments on the RDS platform in the current interest rate environment, the Rockfort Fincap LLP chief noted that at present, RBI Floating Rate Savings Bonds offer 8.05 per cent atleast till December, which is higher than most bank FDs.
Similarly, 10-year State Government Securities (SGS) are offering around 7.20 per cent annualised yields.
Moreover, these sovereign-backed and tradeable instruments, often provide a yield pickup of 50-100 basis points over fixed deposits. In addition, when liquidity in the system is tight or policy rates are high, Treasury Bills (T-bills) can offer significantly better short-term yields than FDs of less than one year.
Even as the total number of accounts opened on the RDS platform has gone up, the total number of registrations has more than doubled to 5,30,815 as of September 29, 2025, against 2,50,549 as of September 30, 2024.
Published on October 14, 2025
As of September 30, 2024, the total number of accounts opened on the RDS platform, which was launched in November 2021, stood at 1,71,269, per RBI data.
Along with the jump in total number of accounts opened, primary market subscriptions in Treasury Bills, Floating Rate Savings Bonds, Central Government Dated Securities, State Government Securities and Sovereign Gold Bonds via the platform, too, rose 37 per cent y-o-y to ₹7,302 crore as of September 29, 2025 (₹5,329 crore as of September 30, 2024).
Total traded volume (secondary market) in the aforementioned instruments shot up about 6.43 times to ₹5,293 crore (from ₹823 crore).
Venkatakrishnan Srinivasan, Founder & Managing Partner, Rockfort Fincap LLP, observed that for decades, bank fixed deposits (FDs) and small savings schemes have been the traditional avenues for risk-averse investors and senior citizens.
However, in the current environment, most good banks are offering interest rates below 7 per cent, which is often inadequate to manage regular household expenses, especially for retirees, who depend on interest income. Small savings schemes, on the other hand, provide safety and decent returns, but come with lock-in restrictions and limited flexibility.
modern alternative
Venkatakrishnan emphasised that this is where RBI’s RDS offers a fresh, modern alternative — combining sovereign safety, flexibility and attractive yields in a completely online format. It gives investors a direct route to access these opportunities, which were earlier available only to institutional participants.
Further, with the extremely volatile equity markets, many investors are currently looking at safer fixed income investment options, which make this scheme very attractive
Referring to better returns offered by instruments on the RDS platform in the current interest rate environment, the Rockfort Fincap LLP chief noted that at present, RBI Floating Rate Savings Bonds offer 8.05 per cent atleast till December, which is higher than most bank FDs.
Similarly, 10-year State Government Securities (SGS) are offering around 7.20 per cent annualised yields.
Moreover, these sovereign-backed and tradeable instruments, often provide a yield pickup of 50-100 basis points over fixed deposits. In addition, when liquidity in the system is tight or policy rates are high, Treasury Bills (T-bills) can offer significantly better short-term yields than FDs of less than one year.
Even as the total number of accounts opened on the RDS platform has gone up, the total number of registrations has more than doubled to 5,30,815 as of September 29, 2025, against 2,50,549 as of September 30, 2024.
Published on October 14, 2025