RBI to Allow SIP Investments in T-Bills as Part of Retail Direct Push
New Delhi, August 6, 2025 — The Reserve Bank of India (RBI) on Tuesday kept the benchmark repo rate unchanged at 5.5%, while announcing a major retail-friendly feature: soon, investors will be able to start a Systematic Investment Plan (SIP) in Treasury Bills (T-Bills) via the RBI Retail Direct platform. The move is aimed at widening retail participation in government securities by offering a safe and flexible investment alternative to traditional bank deposits.
What Is the RBI Retail Direct Platform?
Launched in 2021, the RBI Retail Direct platform allows individuals to buy and sell government securities (G-Secs) online directly from the central bank, without needing to go through banks, brokers, or mutual funds.
Through the Retail Direct portal, investors can currently:
- Open and maintain an RBI Retail Direct Gilt (RDG) Account
- Buy and sell government bonds on the NDS-OM platform
- Participate in primary auctions via non-competitive bids
- Subscribe to Sovereign Gold Bonds (SGBs)
- Invest in Floating Rate Savings Bonds (FRSB)
- Access account statements, nomination, and redemption information
The planned SIP option will enable automatic periodic investments into Treasury Bills, benefitting small savers looking for safety and predictability in income.
What Are Treasury Bills (T-Bills)?
Treasury Bills, issued by the Government of India, are short-term money market instruments used to meet the government’s funding needs. They are considered among the safest debt securities due to sovereign backing.
Key features:
| Tenor | Maturity | Yield to Maturity (Approx., August 5, 2025) |
|---|---|---|
| 14 Days | Short-term | Not regularly issued |
| 91 Days | 30/10/2025 | 5.397% |
| 182 Days | 29/01/2026 | 5.5206% |
| 364 Days | 30/07/2026 | 5.5673% |
- Issued at a discount and redeemed at face value
- Minimum investment: ₹25,000
- Suitable for capital protection and predictable returns
For example, an investor buying a 91-day T-Bill with a face value of ₹130 at ₹128 earns the difference (₹2) as return upon maturity.
Auto-Bidding: The First Step Toward SIP
Last month, the RBI enabled an auto-bidding facility on its Retail Direct platform and mobile app. This allows users to pre-set preferences — such as T-Bill tenor, amount, bidding frequency, and validity period — and automate the bidding process in primary auctions.
Investors can:
- Create Auto-Bid Rules
- Select weekly, monthly, or custom frequency
- Edit, pause, or cancel rules on demand
The upcoming SIP facility will build on this, allowing users to set up structured, recurring purchases similar to those in mutual fund SIPs.
Why Is the RBI Introducing SIPs in T-Bills?
The SIP option is designed to make government securities more accessible to retail savers, offering:
- Ease of investment
- Automation and discipline
- Greater retail participation
- Alternatives to low-yield bank deposits
RBI Governor Sanjay Malhotra, while announcing the move, said the central bank wants “to deepen financial inclusion in the government securities market and enhance household participation through easy-to-use digital routes.”
Should Retail Investors Consider SIPs in T-Bills?
Industry experts say SIPs in T-Bills can be an attractive option, but investors should stay aware of the differences compared to traditional products.
Advantages
- Higher yields vs savings accounts (2–3%)
- Backed by Government of India – low credit risk
- Good for short-term goals (3–12 months)
- Works well for idle funds in CASA accounts
“Investing in T-Bills offers a sensible way to financialise idle money lying in savings accounts,” says Vishal Goenka, Co-Founder of IndiaBonds.com.
“With SIPs, retail investors can continuously roll over their investments as each T-Bill matures, creating a steady cycle of safe returns,” notes Suresh Darak, Founder of Bondbazaar.
Risks and Limitations
- Liquidity constraints: Investors ideally need to hold till maturity
- Secondary market exit may be difficult
- Returns are fixed, not adjusted for inflation
“Retail investors must understand that T-Bills are not as liquid as bank fixed deposits. If funds are required mid-way, exiting can be a challenge,” warns Abhishek Kumar, SEBI-registered investment advisor and founder of SahajMoney.
Who Should Opt for T-Bill SIPs?
The facility is best suited for:
- Individuals with short-term planned expenses (e.g., car down payment, vacation, tax outlays)
- Investors who value capital safety over high returns
- Savers with idle cash in savings/current accounts
- Risk-averse individuals looking to diversify beyond bank FDs
How Will the SIP Mechanism Work?
- Sign up on the RBI Retail Direct portal
- Create an RDG account
- Navigate to the T-Bill investment page
Set up a SIP, including:
- Tenor (91/182/364-day)
- Amount (min. ₹25,000)
- Frequency (weekly/monthly)
- Duration
- Funds will be auto-debited for auction bids
- On maturity, proceeds return to the linked bank account
- Investor may choose to reinvest manually or auto-roll
Retail vs Mutual Fund Route
Currently, many individuals gain exposure to T-Bills indirectly via liquid mutual funds or money market funds. The SIP enhancement now offers a direct, cost-effective alternative for investors comfortable managing accounts themselves.
However, mutual funds offer instant liquidity and professional management, suitable for those less familiar with bond markets.
The Bigger Picture: Deepening India’s Bond Markets
The new feature aligns with the broader aim of encouraging retail participation in debt markets, enhancing market depth and reducing reliance on institutional investors. In recent years, the government has taken several initiatives:
- Launch of G-Sec ETFs and Bharat Bond ETFs
- Permission for retail investors in sovereign bond auctions
- Introduction of floating rate bonds aimed at individuals
According to analysts, SIP-based T-Bill investing could mark a cultural shift, ushering in a new type of retail investor comfortable with direct government bond exposure.
Final Takeaway — TheTrendingPeople.com
The RBI’s decision to roll out SIPs in Treasury Bills represents a bold step toward democratising government securities. While not a replacement for traditional bank FDs or mutual funds, T-Bill SIPs offer security-conscious investors a disciplined, higher-yielding alternative for short-term parking of capital. However, prospective users should weigh liquidity needs carefully and ensure they fully understand how bond maturity and secondary market dynamics work. For those seeking safety, convenience, and steady returns — without middlemen — the upcoming feature could open an efficient and accessible pathway to sovereign-backed investing.