The Full Form of RGESS is‍ Rajiv Gandhi Equity Savings Scheme.

Rajiv Gandhi Equity Saving Scheme or RGESS was a mutual fund along with tax advantage that was offered by the Government of India to encourage flow of savings of small retail investors in the domestic capital market. It was announced in the Union Budget of 2012-13 and extended in 2013-2014. However, the Union Budget of India of 2017 proposed that RGESS be completely phased out by 2018 with effect from April 1, 2017 due to less number of assessees.

It was a tax saving scheme as well as an equity scheme that aims to include small investors with gross income per year below a certain amount. Its objective was to promote the ‘equity culture’ in India by expanding investor base in Indian securities market and also further the goals of financial inclusion and stability. It was designed for first-time retail investors lacking experience in the securities market. New retail investors are those who would make their first time investment of any kind under RGESS account on the first day of initial year*. Investors who qualified for first-timers are those who:

• Didn’t have a demat account
• Had an account but never made any transaction neither traded in any derivative segment of market and equity before designating an account under RGESS