What are the different types of Treasury Bills (T-Bills)?

What are the different types of Treasury Bills (T-Bills)?

Treasury Bills (T-Bills) are short-term debt instruments issued by the Government of India to meet short-term borrowing needs. They are issued at a discount and redeemed at face value on maturity. T-Bills do not offer interest payouts but generate returns based on the discount to their face value.

Types of T-Bills based on maturity

  • 91-day T-Bills
  • 182-day T-Bills
  • 364-day T-Bills

These instruments are considered highly liquid and virtually risk-free due to sovereign backing.

Example

Let’s say the RBI issues 91-day T-Bills at ₹99.50 with a face value of ₹100:

  • You invest in 10 units at ₹99.50 = ₹995
  • On maturity (after 91 days), you receive ₹1000
  • Your return = ₹5, which is the discount-based gain

What if...

ScenarioResolution
You want interest payoutsT-Bills don’t offer periodic interest. Choose G-Secs if you want regular coupons.
You want to exit before maturityT-Bills can be sold on the secondary market, but liquidity and pricing may vary.
T-Bills are excellent for short-term parking of surplus funds with high safety and predictable returns, especially for retail and institutional investors.

Last updated: 26 Jun 2025

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