Now, retail investors can invest in T-bills through SIPs

The Reserve Bank of India (RBI) has announced its decision to enable auto-bidding facility for Treasury Bills (T-Bills) on the Retail Direct portal that allows retail investors to open their accounts under the Retail Direct Scheme.

“We are expanding the functionality in the RBI Retail Direct platform to enable retail investors to invest in Treasury Bills through systematic investment plans,” said the RBI Governor Sanjay Malhotra in his policy address.

The auto-bidding functionality will facilitate systematic investments through automatic placement of bids in primary auctions of T-bills. These are essentially money market instruments – short-term debt instruments issued by the government of India to meet its liquidity requirements.

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They are considered risk‑free as they carry a sovereign guarantee. They generally yield interest rates higher than savings accounts.

T‑Bills are issued at a discount and redeemed at face value. For example, if you buy a T‑Bill for Rs 98,000 with a face value of Rs 1,00,000, the Rs 2,000 difference becomes your return on maturity. These bills are available in different maturities such as 91‑day, 182‑day, and 364‑day , making them ideal for parking short‑term surplus funds. Since T‑Bills don’t pay periodic interest, your gains are realised as the difference between purchase price and redemption value.

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The RBI Retail Direct Scheme was launched by Prime Minister Narendra Modi on November 12, 2021. It allowed retail investors to invest directly in government securities for the first time. Investment can be made conveniently through the online portal rbiretaildirect.org.in, which facilitates participation in both primary and secondary G‑sec markets.

To open a Retail Direct Gilt (RDG) account, investors must have a savings bank account in India. PAN issued by the income tax department, An officially valid KYC document, a valid email ID and registered mobile number.