Treasury Bills (T-Bills) are short-term debt instruments issued by the Government of India to meet short-term funding needs. They are considered one of the safest investment options as they are fully backed by the government. T-Bills are issued at a discount to their face value and redeemed at par upon maturity. The difference between the issue price and redemption value represents the investor’s earnings.

T-Bills are available in three main tenures — 91 days, 182 days, and 364 days. These are auctioned regularly by the Reserve Bank of India (RBI) on behalf of the government. Retail investors, institutional investors, and banks can participate in these auctions through the RBI’s electronic platform or via authorized intermediaries. Since T-Bills are zero-coupon instruments, they do not carry periodic interest payments; instead, returns are realized at maturity.

Investing in Treasury Bills offers several benefits, such as high liquidity, low risk, and assured returns. They are ideal for investors seeking short-term parking of funds with minimal risk exposure. Moreover, T-Bills are actively traded in the secondary market, making it easy for investors to exit before maturity if needed. The yield on T-Bills is influenced by prevailing market interest rates and monetary policy decisions by the RBI.

For individuals and institutions, T-Bills serve as an important component of a diversified investment portfolio. They help manage liquidity while maintaining capital safety. However, it is essential to understand that T-Bill returns may be lower compared to other market-linked instruments, given their low-risk nature. Overall, Treasury Bills are an efficient and secure way to invest in government securities and can play a key role in short-term financial planning.