Treasury Bills in India: Tenures, Auctions and How to Buy

Treasury bills (T-bills) are short-term loans to the Government of India, issued for 91, 182 or 364 days. You buy them below face value and get the full face value at maturity; the difference is your return. Individuals can buy them from ₹10,000 through RBI Retail Direct or a broker, in auctions the RBI usually holds every Wednesday.

Key facts

For dated government bonds, state loans and bond yields generally, see our government securities guide. This page covers T-bills only.

What T-bills are

The RBI describes T-bills as money market instruments: short-term debt of the central government, issued now in three tenures of 91, 182 and 364 days. They pay no interest during their term. Instead, you pay less than the face value when you buy, and the government pays the full face value on maturity.

The RBI’s own example: a 91-day T-bill with face value ₹100 might be issued at ₹98.20 and repaid at ₹100. The government also issues cash management bills, which work like T-bills but run for less than 91 days to cover temporary mismatches in the government’s cash flow.

Discount pricing and yield

The RBI gives this formula for the annualised yield on a T-bill:

Yield = [(Face value − Issue price) ÷ Issue price] × (365 ÷ days to maturity) × 100

Worked example from the 16 September 2026 auction: non-competitive bids for the 91-day bill were allotted at the weighted average price of ₹98.7038 per ₹100. On ₹10,000 of face value, you would pay ₹9,870.38 and get ₹10,000 after 91 days, a gain of ₹129.62. Using the formula, that is a yield of about 5.27% a year, matching the RBI’s published weighted average yield of 5.2673%.

Yields move with interest rates. The RBI’s repo rate is 5.25%, and the Monetary Policy Committee next meets from 5 to 7 October 2026. For how a repo change passes into loans, see our note on the repo rate and your EMI.

Results of the 16 September 2026 auction

Source: RBI press release 2026-2027/1125. Yields change every week; check the latest result on the RBI website before you bid.

How the weekly auction works

The RBI usually auctions all three tenures every Wednesday, for the amounts set in the government’s issuance calendar. Banks and other large bidders place competitive bids, quoting the price they will pay. T-bill auctions use a uniform price method, so all successful competitive bidders pay the cut-off price.

Individuals place non-competitive bids. You state only the amount, not a price. Your bid is allotted at the weighted average price that emerges from the auction, so you do not need to judge the market. Settlement happens on the next working day, and the bills are credited to your account then.

Buying via RBI Retail Direct or a broker

RBI Retail Direct

Any resident individual with a rupee savings account, PAN, a valid KYC document, email and mobile number can open a Retail Direct Gilt (RDG) account. NRIs eligible under FEMA can also apply. The RBI charges nothing to open or keep the account; payment gateway charges may apply when you pay for a bid.

1. Go to rbiretaildirect.org.in and register with your PAN, mobile number and email.
2. Complete online KYC and link your savings bank account.
3. Once the RDG account is active, open the primary market section and pick the T-bill tenure being auctioned.
4. Enter the amount, in multiples of ₹10,000, and submit the bid.
5. Pay by UPI or net banking, at once or later but before the bidding closes.
6. After settlement, usually one working day after the auction, check that the T-bills appear in your RDG account.

Bills held in Retail Direct can also be sold before maturity on the RBI’s NDS-OM secondary market platform.

Through NSE goBID or a broker

NSE runs a non-competitive bidding facility for T-bills, dated bonds and state loans. You can bid through an NSE trading member or through the NSE goBID web platform and app. The bills are credited to your demat account. Brokers may charge a fee; check before bidding.

Tax on the discount

Sources differ on how to classify the gain on a T-bill: Zerodha treats it as short-term capital gain, and Bajaj Broking as interest income. Under either reading, the gain is added to your income and taxed at your slab rate. No TDS is deducted, so report the gain yourself in your return and pay any advance tax due.

For FY 2025-26, report under the Income-tax Act, 1961. Bills that mature from 1 April 2026 fall in tax year 2026-27 under the Income-tax Act, 2025. You can check your total liability with the income tax calculator. If you want a longer government-backed option with a floating rate, see RBI Floating Rate Savings Bonds.

Frequently asked questions

What is the minimum investment in treasury bills?

₹10,000 of face value, and further amounts in multiples of ₹10,000.

How often are T-bills auctioned?

The RBI usually holds auctions every Wednesday for the 91-day, 182-day and 364-day bills.

What is the current 91-day treasury bill yield?

At the 16 September 2026 auction, the 91-day cut-off yield was 5.2801% and the weighted average yield 5.2673%. The rate changes each week.

Can I sell a T-bill before maturity?

Yes. Bills held in RBI Retail Direct can be sold on the NDS-OM platform; bills in a demat account can be sold through your broker if there is a buyer.

Do T-bills pay interest?

No. You buy them at a discount and receive the face value at maturity; the difference is your return.

Is TDS deducted on treasury bills?

No. The gain is taxable at your slab rate, and you must report it in your income tax return.

Is there a charge for RBI Retail Direct?

No. The account is free to open and maintain; payment gateway charges may apply when you fund a bid.

Sources

• Government Securities Market in India – A Primer (T-bills, auctions, yield formula) — Reserve Bank of India (checked 16 Sep 2026)
• Treasury Bills: Full Auction Result, 16 September 2026 — Reserve Bank of India (checked 16 Sep 2026)
• RBI Retail Direct Scheme FAQs — Reserve Bank of India (checked 16 Sep 2026)
• RBI Retail Direct portal — Reserve Bank of India (checked 16 Sep 2026)
• Non-competitive bidding in government securities and T-bills — NSE (checked 16 Sep 2026)
• Taxes on G-secs and T-bills — Zerodha (checked 16 Sep 2026)
• Treasury bills: types and tax — Bajaj Broking (checked 16 Sep 2026)