New Delhi, Jan. 12 -- For most Indian households, debt investing begins and ends with fixed deposits. A smaller set ventures into debt mutual funds, often without a full understanding of interest rate risks. Direct investment in government securities-despite being among the safest instruments available-has historically remained out of reach for retail investors.

The Reserve Bank of India's retail direct gilt (RDG) account, launched in 2021, changes this equation. More importantly, it has democratized access to the Indian government securities (G-sec) market for individual investors and provides retail investors an opportunity to rethink how debt fits into their personal financial portfolio.

What RDG account really enables for retail inv...