Types of Treasury Bills (T-Bills)

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

Treasury Bills, commonly referred to as T-Bills, are short-term securities issued by the Government of India. They come in three distinct maturity periods:
  • 91-day T-Bills
  • 182-day T-Bills
  • 364-day T-Bills
T-Bills are issued as zero-coupon securities, meaning they don’t pay periodic interest. Instead, they are issued at a discount and redeemed at face value upon maturity.

For instance, suppose the Reserve Bank of India issues 91-day T-Bills at a discounted rate of ₹99.50 per bill with a face value of ₹100. An investor buys 10 T-Bills at the bid price of ₹99.50 per bill, investing a total of ₹995. When the T-Bills mature after 91 days, the investor receives ₹1000, the face value of the 10 T-Bills. The interest earned, in this case, would be ₹5 (₹1000 - ₹995).

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