"The launch of the app for investing in government securities is an important milestone at a time when the country is seeing a surge in digital payments. The retail participation in government securities only started after Sebi allowed exchanges to set up non-competitive bidding platforms by exchanges," Tyagi said.
He said compared to fixed deposit returns offered by banks, the government bonds are currently offering better yields, and retail investors should get the opportunity to earn higher returns.
The 10-year government bond yield is trading at 7.80-7.83 per cent.
He, however, said the participation of retail investors in the government securities has been low, so far, and there is a need to increase it through publicising such platforms.
"We, on a regular basis, will review the progress (of such platforms) and will try to co-ordinate with exchanges to improve it further," Tyagi said.
The app will be available to all the registered investors with NSE's trading members and will also facilitate members to acquire new retail investors.
It will allow investors to make payments directly from their bank accounts using the unified payments interface (UPI) and internet banking.
The Union Budget 2016-17 had announced that RBI will facilitate retail participation in the primary markets through stock exchanges.
RBI conducts auction of G-sec and T-bills on a weekly basis where 5 per cent of the notified amount is allotted for eligible investors under the scheme for non-competitive bidding facility.