Money word, in simple language

Treasury bill

Also called T-bill

A short-term government loan of 91, 182 or 364 days, sold at a discount and repaid at face value.

Debt funds Figures verified 2026-11-03

Example. A 91-day T-bill bought at 98.20 rupees and repaid at 100 earns 1.80 rupees, about 7.35% a year.

A Treasury bill, or T-bill, is the government’s short-term IOU. It’s issued for 91, 182 or 364 days, pays no coupon, and is sold at a discount to its face value. The RBI’s own example: a 100-rupee, 91-day bill issued at 98.20. You can buy them through RBI Retail Direct. See bonds and government securities.

Questions people ask

What is a Treasury bill?

A Treasury bill is a short-term loan to the Government of India, issued for 91, 182 or 364 days. It pays no interest. You buy it below its face value and get the full face value at maturity; the difference is your return.

How do I buy a T-bill?

Through the RBI Retail Direct portal, where individuals can bid in T-bill auctions from 10,000 rupees. Since August 2025 the portal can place bids automatically, including reinvesting when a bill matures. Banks and brokers offer them too.

← Back to all terms

Treasury bill

Questions people ask

Related terms

One money lesson, in your inbox