What are Treasury Bills or T-Bills?
Treasury Bills, often abbreviated as T-Bills, are short-term debt instruments issued by the Government of India to meet its temporary financing needs. These securities are auctioned by the Reserve Bank of India (RBI) and are considered one of the safest investment options due to their sovereign backing.
Key features of T-Bills
- Issuer: Government of India (via RBI)
- Tenure: Typically 91 days, 182 days, or 364 days
- Risk level: Low (government-backed)
- Returns: Issued at a discount and redeemed at face value (zero-coupon)
T-Bills do not pay periodic interest. Instead, investors earn the difference between the discounted issue price and the face value received at maturity.
What if...
| Scenario | Resolution |
|---|
| You want regular income | T-Bills do not provide interest payouts; consider G-Secs for periodic returns. |
| You need quick liquidity | T-Bills can be traded in the secondary market, offering decent liquidity for short-term investors. |
T-Bills are a smart option for conservative investors or those looking to park funds for a short duration with minimal risk.
Last updated: 26 Jun 2025
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